Currency strength meter
Each major currency’s average move against the other seven. Strong against weak is where trends tend to be cleanest.
How it is worked out
For each currency, PipDesk averages its percentage change against each of the other seven majors over the window, using European Central Bank daily reference rates. Daily data: it shows trends, not intraday moves.
Questions
How do traders use a strength meter?
To pair a strong currency against a weak one in the direction of the move, and to avoid pairs where both currencies are doing the same thing.