IC Markets
Written byAbir KhanWriter
Market analysis byTanbir Habib RiyadCo-Founder & Trader
Fact-checked & QC byJowel RanaFact-Checker & QC
Edited byRanjan NiskrityChief EditorThis tool is for education and planning only and is not financial advice. Forex and CFD trading carries a high risk of losing money rapidly due to leverage. Check your broker's own contract specifications, fees and margin rules before you trade.
How the currency strength meter works
A currency has no price on its own; it is always measured against another. The meter solves that by comparing each of the eight majors against the other seven. For every currency, it takes the percentage change against each rival over the chosen period and averages them into one score.
So a score of +0.8% means the currency gained an average of 0.8% against the rest; −0.5% means it lost that much. The day, week and month views use the European Central Bank's daily reference rates. For moves within today's session, use the live heat map below the meter.
How to use currency strength in your trading
- Find the extremes
Note the strongest and weakest currencies on your time frame.
- Build the pair
Put the strong currency against the weak one. If GBP is strongest and JPY weakest, GBP/JPY is the pair to study for longs.
- Check it agrees across time frames
Strength that shows on the week and the month is more reliable than a one-day move.
- Confirm with price
Look for a clean trend or breakout on the chart before entering; strength can reverse on news.
- Mind correlation
Several trades built on the same strong currency are one bet. See the correlation table.
What makes a currency strong or weak
Interest-rate expectations
Markets buy currencies whose central banks are expected to raise rates or hold them high.
Economic data
Better-than-expected growth, jobs and inflation figures lift a currency. Track releases on the economic calendar.
Risk appetite
In calm markets AUD and NZD tend to strengthen; in stress, JPY, CHF and USD tend to lead.
Commodity prices
Oil supports CAD; metals and iron ore support AUD.
Worked example: choosing a pair from the meter
- The reading
On the one-week view, USD ranks strongest at +0.9% and NZD weakest at −1.1%.
- The check
The one-month view agrees: USD is still in the top two and NZD in the bottom two.
- The pair
She studies NZD/USD for a short trade, where the weak currency is the base and the strong one is the quote.
- The chart
NZD/USD is making lower highs, so she waits for a pullback to resistance before selling, with the stop above it.
The meter narrowed 28 possible pairs to one worth studying; the entry still came from the chart and a planned stop.
Currency strength mistakes
After a big move, the strongest currency is often due a pullback.
A one-day spike can sit inside a month-long downtrend.
A central bank decision can flip the ranking in minutes.
Three trades long USD are one large dollar bet.
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Currency Strength Meter FAQs
What is a currency strength meter?
A tool that ranks currencies by how much each has gained or lost against a basket of others over a period. It helps traders find strong and weak currencies to pair together.
How is currency strength calculated here?
For each of the eight majors, the meter averages its percentage change against the other seven over the chosen period, using ECB daily reference rates.
Is the currency strength meter live?
The day, week and month rankings use daily ECB rates, updated each business day. Underneath, the heat map streams live from TradingView for intraday moves.
Which currency pairs should I trade using strength?
Pair a currency near the top of the ranking against one near the bottom, then confirm the trend on the chart.
Why do different strength meters show different results?
They use different data, periods and formulas. Compare the direction of the ranking, not exact numbers.
Sources: ECB euro foreign exchange reference rates, Frankfurter API, TradingView forex heat map.