September 23, 2016. The EUR is the strongest. The GBP is the weakest.
It is Friday. That implies Friday like trading as some traders prepare for the weekend when risk increases due to being closed. So be aware.
The strongest currency on This Friday is the EUR. The weakest is the GBP. When the EUR is strong and the GBP is weak, that implies a surge in the EURGBP and indeed it is the largest mover of the day. It is the straw that stirs the drink (up 0.90% on the day). The NZD has also continued its move lower (started after the RBNZ statement on Thursday).
Looking at the EURGBP 4-hour chart below, the pair fell below the 0.8575-81 level in late trading yesterday but could not extend below the close-by trend line. When the price moved back above the 0.8581 area, traders turned around and took the pair higher. Concerns about Brexit continue to weigh on the GBP.
Looking at the ranges and changes, the pairs with GBP in their name are where the action is found. The other pairs against the USD are below the norm as far as trading ranges. The EURUSD is trading in a narrow 31 pip trading range. The USDCHF Is following the lead of the EURUSD today. The USDJPY range of 56 pips is also low compared to the 22 -day average trading range line (red line in the lower chart). When the range is very low (well below the average), it often is a precursor to an extension later in the day. But remember....it is Friday so liquidity conditions and weekend squaring up, can cause choppy trading conditions. .
