Courtesy of Goldman Sachs’ technical analysis team comes this cracking chart that tracks the trend in major currencies against the US dollar in the past two weeks.
Simply, the bottom axis tracks the gain or loss seen two weeks ago with the left axis tacking the movement seen last week.
“If a currency appears in the top right quadrant it indicates it’s trending higher and if a currency appears in the bottom left it indicates it’s trending lower. If it appears in the bottom right it is turning lower and if it appears in the top left it is turning higher,” says Goldman.
With the exception of the Japanese yen, the US dollar has been unloved.
Given the lift in investor sentiment and commodity prices, some of the worst performing currencies of recent months – the Brazilian real, Australian dollar, South African rand and Russian ruble – have been among the strongest performers.
Whether that trend can last will likely be determined by this week’s US Federal Reserve policy meeting.