Thursday, June 14, 2007
Where Is The Strength?
When analyzing the currencies I always like to compare the 4 major currencies to see which is the strongest and which is the weakest. For this discussion I'm not going to talk about the Japanese Yen because it's obvious that the Yen is the weakest out of the 4 major currencies.
Above is a chart of the B-Pound, Euro and the Swiss Franc. As you can see the Swiss is the weakest of the 3 currencies while the British Pound is the strongest. The pound is sitting right at last month's lows while the Swiss franc and Euro are clearly below last month's low.
Over the past few days as the Euro and Swiss franc move lower, the British Pound is making a higher low. This to me is a sign of relative strength. I think if the currencies rally, the British pound should be the leader on the upside.