While the major currencies on the Forex market, USD, GBP, and EUR, have mostly traded sideways over the past week, the Japanese yen has lost a significant lead against the three major currencies. The JPY depreciates as bank fears ease and interest rate forecasts in the US, UK, and the Eurozone rise again. A bright spot came from Canada, where the CAD rallied against the USD and others.
Individual currency performance of EUR, JPY, USD, CHF, GBP, CAD, and AUD in all combinations of pairs against each other is measured and weighted equally based on the weekly net change shown below; Currencies are then ranked by their total net percentage change.
Trend followers can trade against current weaknesses or strengths, while opponents can trade against the trend.
Forex market analysis
Japanese yen (JPY)
The yen continues to present gains made in early March amid concerns in the US and European banking sectors as the flight to quality has propelled the Japanese currency higher. The JPY – just a few months away from its lows a few decades ago – is fast approaching its all-time lows against the EUR, USD, and GBP.
Canadian dollar (CAD)
The CAD managed to recover slightly against the USD and AUD, moving further away from the all-time lows it had repeatedly flirted with over the past year, with USD/CAD trading above 1.38 (high since May 2020) several times in March.
US dollar (USD)
After last week’s USD sell-off, the dollar could book flat action as a gain. While the market still looks weak against the EUR and GBP, the USD has held up against AUD and JPY for the past week’s trading.
The Euro held on to most of its gains from the previous week as questions arose about whether it would return to where it was trading against the dollar or into a new range above 1.10 for the EUR/USD to continue. It should also be noted that the EUR/JPY pair has returned to its highs in recent months.
Australian dollar (AUD)
The AUD appears comfortable with its trading at a lower rate than other major currencies, though not drastically. In the past month, AUD/USD has spent fewer than one or two days outside of the range of 0.66 to 0.68; its range for the previous year was between 0.62 to 0.76.