It appears of late the currency strengths are rallying strength from the economic and/or health of their region of origin… ie: Australia and New Zealand have come away from the pandemic with their populations pretty much unscathed when compared to the major currency countries, hence the AUD and NZD have been at the pointy end of Dennis’s matrix when they shot to the top back on April 9th… and have remained there ever since with the exception of NZD which had a week or two in the wilderness…
I brought this up with Dennis on 10th April…see post here… and 60 days on it now appears to be the case.
Back in March AUD and NZD where dragging on the tables as we were the first to feel the effects of the pandemic, possibly due to proximity and reliance on the Chinese for goods and tourism… Once both oceanic economies had locked down hard the focus shifted to the carnage in Europe…
At that time (Mid April) Italy and Spain’s health systems were being devastated by the Virus and the EUR was on the canvas… A few weeks later the pandemic ramped up in the UK and the GBP fell to last place.
Now we have the USD on its knees with major civil disobedience issues and a raging death toll from the pandemic which started the USD’s descent to the floor two weeks ago when the flare up began…
Coincidence…?? I think not… I have been trading the pandemic’s fundamentals with profitable results over the last 6 weeks or so… as contrarian trading the NZDJPY and other majors against the strength of the AUD and NZD as demonstrated in May…
The JPY has shown to be a very fluid player… moving up and down the Currency Strengths almost like a metronome. Japan could be a major winner or loser out of what happens next with China.
Edit: Above is displayed in Dennis’s Data Mapped over March, April, May & June…