Currency Strength
A measure of how strong or weak a currency is relative to other major currencies, calculated by analyzing its performance across multiple forex pairs.
What is Currency Strength?
Currency strength measures the relative power of a currency against a basket of other major currencies. Unlike looking at a single currency pair (like EUR/USD), currency strength analysis evaluates how a currency performs across ALL its major pairs simultaneously.
How It’s Calculated
Currency strength is calculated by:
- Analyzing all major pairs - For USD, this includes EUR/USD, GBP/USD, USD/JPY, USD/CHF, USD/CAD, AUD/USD, and NZD/USD
- Measuring percentage change - Calculate the % change for each pair over a specific timeframe
- Averaging the results - Combine all pair performances to get a single strength score
Strength Score Range
- +50 to +100: Very strong - look to BUY this currency
- +20 to +50: Moderately strong
- -20 to +20: Neutral - no clear direction
- -50 to -20: Moderately weak
- -100 to -50: Very weak - look to SELL this currency
Why It Matters
Understanding currency strength helps traders:
- Identify trending currencies
- Find divergence opportunities
- Confirm or contradict signals from individual pair analysis
- Time entries better
Try It Now
See real-time currency strength on our Currency Strength Meter.