Infinox Capital introduces free AI-powered sentiment analysis tool

Infinox Capital introduces free AI-powered sentiment analysis tool

Online trading platform Infinox Capital is offering users free access to an AI-powered sentiment analysis tool it claims successfully predicted sterling's sharp drop at the beginning of August.

The tool continuously tracks more than five million data sources from around the world to build up a detailed, global picture of market attitudes towards everything from currencies to commodities, and from equity indices to cryptocurrencies.

The technology, which uses AI to ingest and analyse thousands of news stories, company announcement and social media posts every minute, gives investors a real-time snapshot of market sentiment.

This sentiment doesn't just reflect price movements, claims Infinox, but can be used to anticipate them too.

For example, the tool identified a worsening of sentiment towards sterling on 28th July, a week before the Bank of England raised UK interest rates. That negative sentiment endured and even led sterling to fall on the day of the Bank’s announcement, despite convention suggesting rate rises cause the Pound to appreciate.

In the following days, comments by the Bank’s Governor Mark Carney and International Trade Secretary Liam Fox about the increasing likelihood of a ‘no-deal’ Brexit sent sterling sentiment reeling further.

Despite the publication of official data showing an improvement in UK GDP, the Pound took its cue instead from the negative sentiment and plunged to its lowest level against the Dollar for more than a year.

Jay Mawji, MD, Infinox, says: "Sentiment is more than just a mirror on the market - it can be a market-mover in its own right.

“The Pound’s recent behaviour is a case in point. Investors’ fears of a messy, cliff-edge Brexit combined with negative sentiment to drag down sterling when conventional wisdom suggested it would rise.

“Such insights can give investors a decisive edge, but previously the prohibitive cost of the AI used to power sentiment analysis tools meant they were beyond the reach of all but the wealthiest fund managers and trading desks.

"But Infinox is committed to putting world-class trading power into everyone's hands. Advances in AI have allowed us to develop an interactive sentiment analysis tool that any investor can use - for free - to help them make better informed trading decisions."

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