Here's why the Dollar is weak. If you have been keeping an eye on the currency strength meter over the past week, you will know that the Dollar is weak.
If you want to try out a currency strength meter but are worried about investing in an expensive indicator, the good news is that you can get a free strength meter in Admirals Supreme Edition plugin for Currency Strength Meter 4 and 5!
The strongest currencies perform well against other currencies are marked in green while the weakest currencies are marked in red.
There are a range of advantages to using a currency correlation matrix as a Forex strength indicator, including its simplicity, it's usefulness as a short-term indicator, the ability to eliminate double exposure and unnecessary hedging, the ability to signal high-risk trades, and the fact that it's available for free.
There are several important events that you should keep in mind as we enter another week. These are, as usual,...
Currency Strength Meter Supreme Edition is a free Currency Strength Meter plugin exclusively for traders with an Admirals account. It includes an indicator package with 16 new indicators, including the Forex correlation matrix, which enables you to view and contrast various currency pairs in real-time.
The Live Currency Strength Meter allows you to see the relative performance of major currencies in real-time. To make it easier to visualize, we have even color coded the data so you can see the Forex market live!
For example, if the EURGBP and GBPUSD have a correlation of -91, this means they have a negative correlation - these pairs are likely to move in opposite directions, so two long trades (or two short trades) on these pairs would likely cancel each other out.
There are important economic events this week that you should be paying attention to. These events will be of great importance to you.
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This table is updated in real-time and compares the current currencies performance with previous trading days. The percentage indicates the currency's performance compared to the one that was close to this moment.
When it comes to currency strength, because there is such a high correlation between the two pairs, we can assume that the GBP (the common currency between the pairs) is the one that is driving these movements, and therefore the GBP is the strongest currency in this example.
As Q1 draws to a close, we're now in the final hours of quarter one 2020.
In the first pair, the GBP is the quote currency (meaning long trades expect the EUR to strengthen against the GBP). In the second pair, the GBP is the base currency (meaning long trades expect the GBP to strengthen against the USD). This means a long trade in the EURGBP is one that expects the GBP to weaken, while a long trade in the GBPUSD is one that expects the GBP to strengthen.