E-mail:    

CURRENCY ANALYSIS

Sterling’s Recovery Phase
How Much Further to Go?

Sterling’s Recovery Phase, 10 FX majors, Currency Analysis, fx trader, forex sterling recovery

Sterling has lost the most ground of any of the 10 FX majors (which I most closely follow) during 2016. Except for a week or so in late May when the New Zealand Dollar briefly dipped into last place, Sterling has been at the bottom of the 2016 average performance chart since 19th February.  Despite having steadily recovered since mid October, Sterling is still comfortably the worst performing of the 10 FX majors.  As the chart below shows, Sterling at the present time has lost an average of around 15.5% during 2016 versus the other 9 FX majors, namely USD, EUR, JPY, CHF, CAD, AUD, NZD, NOK & SEK.  Its greatest loss has been against CAD (followed by NOK & NZD), with the smallest loss vs SEK.

Sterling’s Recovery Phase, 10 FX majors, Currency Analysis, fx trader, forex 22Dec16 avg perf 10 fx majors from 01jan16

Chart 1. Average performance chart for 10 FX majors since the start of 2016

Average performance for 10 FX majors since the start of 2016

Since reaching its extreme low on 17th October, Sterling has been the strongest performing FX major, gaining on average just over 6% versus the 9 other FX majors, although it's out-performance versus the USD has been narrowing over recent weeks and is now down to around 1.25%.  Over the same period, the JPY has lost an average of around 7% versus the 9 other FX majors, with the NOK in 2nd worst place at -2.25%.

Sterling’s Recovery Phase, 10 FX majors, Currency Analysis, fx trader, forex 22Dec16 avg perf 10 fx majors from 17Oct.

Chart 2. Average performance chart for 10 FX majors since Sterling's low on 17th October 2016

Next>>