Monthly - Currency Strength Meter
Our meter performs calculations on 28 pairs to determine the overall strength of each currency.
Monthly Currency Strength of Key Currencies
These charts reveal the key currency pairs that have made the biggest movements in price over the past month. Traders can use these charts to decide which Forex pairs offer them the best trading opportunities in the short term.
To become a successful trader it is important to understand which currency pairs will give you the highest probability of success. Our free currency strength meter is designed to give you a quick overview of the underlying movement of each individual currency in the Forex market.
If we know that the US Dollar is strong and the Japanese Yen is weak then it's obvious that going long on the USD/JPY Forex pair offers us the a low risk trading opportunity.
Ultimately, it is down to you to decide how to use these tools. Most traders use the strength meter alongside an existing strategy as a way to trade in the same direction as the underlying strength of the markets.
Our currency strength meter is updated every 5 minutes. Please note that the meter will only refresh when the Forex market is open. When the markets are closed the meter is paused until they open again on Monday morning.
This is important to understand particularly if you are trading the markets on a smaller time frame. A gap-open on a Monday may give you a false impression on the strength or weakness of a particular currency. That’s why it is important to visually confirm what the currency strength meter is telling you about a currencies strength.
Currency Strength Methodology
We use the standard formula to calculate the percentage of change for a particular currency pair as follows:
Current Price – Old Price / Old Price * 100
We perform this calculation across 28 Forex pairs for the monthly timeframe and then group the pairs together to work out the underlying strength of a given currency.
To give you an example, here’s what the calculation may look like for the U.S Dollar (USD):
AUDUSD: -2.1% (+2.1%)*
EURUSD: -3.8% (+3.8%)*
GBPUSD: -1.4% (+1.4%)*
NZDUSD: -3.5% (+3.5%)*
USD Strength = 19%
* We invert positive or negative values when the USD is the quote of a pair, for base pairs the value remains unchanged.