Good morning mates.
Here’s some more Thursday.
- USD (white) most bid currency that session +1.36%.
- GBP (blue) most sold currency that session -2.41%.
So, I’ve been writing stuff down, as I run these numbers, so that I can put it up in this write up. This is what I noticed this morning.
This week is showing me what a divergence there has been between the USD and the JPY (purple). This is all because, due to history, I know that the Dollar and the Yen like to travel together. It’s a dynamic. I’m going to show you in a minute. But, I noticed that the last session ended up with the top spread pair being USD/JPY. See it there? At 17.52%. That means that there is no other pair that is separated more than this pair. For this month running total percentages.
That tells me that this is not so normal. Which I can say that it’s a divergence. It’s like, out of sorts. Strange. But, it’s the way the market is having it now. And if you’ve done any kind of reading about analyzing, you should know that a divergence simply signifies a presumption of the future to have things go back to the way they were. Kind of like the way standard deviation works. It’s just stuff wanting to go back to normal.
In this case, which will it be? The USD to go south? Or the JPY to start going north? I mean, we really don’t know which way, but I think it’s a good thing to look out for and be aware of. Know what I mean?
Let me show you what the month of January looks like. This is the Daily only standings for that month.
White and Purple. Best buds riding together. Man…I remember back in October, I think, they were both having such domination against all other currencies. Both were on top, like big time. In any case, it’s been a fact.
Now, how about this month, so far?
You can see that last week the Yen made some real strides to be meeting up with the USD. But, it all started this week, of the falling away. And to boot, today, churning out the top spread pair.
Given all that. I thought it was interesting to see that, for this past session, the USD was the most bid currency at +1.36%. And the JPY was the second most bid currency at +1.34%. Which does make sense.
It is too early to tell, but maybe the Yen wants to climb, instead of the USD to fall.
Again…it’s all in the dynamics of how they are relating to each other. The market doesn’t always make sense. But then again, a lot of times it does. So right now, it’s not. Let’s just keep this stuff in mind. Cause, that’s the whole point of this thread. Currency Dynamics.
Alright. See ya at the end of the day.
MY DAILY’S.xlsx (345.6 KB)