USD/CAD Ratio: 1.06
Signal: Bearish
| Currency | Last Week | Present* | % Long | % Change in Positions Outstanding | Signal |
| USDCAD | 1.22 | 1.06 | 51% | -0.89% | Bearish |
USDCAD – It has finally happened. USDCAD’s Speculative Sentiment ratio finally flipped to a net negative reading for the first time since November of 2006. The flip occurred early this morning; and though the sentiment gauge had not maintained the negative figure into the afternoon, the milestone was nonetheless marked. Standing at 1.06 during the US session, the sentiment gauge reflected a modest skew with only 51% of traders holding long positions. This relative extreme for the long-positive USDCAD sentiment gauge comes as underlying price action has tested a range high of 1.0350 for the third time in five months, suggesting yet another dollar-favorable breakout may be developing. The indicator’s details show that, despite the ratio’s move towards a flip, there have been only modest changes to positioning. Long positions have eased 0.4% since yesterday and are 8.4% lower on the week. Short positions were unchanged since yesterday and 8.6% higher from last Thursday. Despite the retail communities proclivity for range trading, open interest is actually 3.2% lower on the week and 6.7% below the monthly average.
