Influence of currency pairs

Hi FF!
Recently I repeatedly read "FX turnover in April 2016", press here to read it.
Then after looking at turnover of each currency pair I decided to create a list of currency pairs and what their role is in influencing certain currency.
Hope you find it useful.

Currency
Currency pair / influence in percentage

USD

USDEUR - 35.5
USDJPY - 27.4
USDGBP - 14.4
USDAUD - 8.1
USDCAD - 6.7
USDCHF - 5.5
USDNZD - 2.3

EUR

EURUSD - 81
EURGBP - 7.1
EURJPY - 5.7
EURCHF - 3.2
EURCAD - 1
EURNZD - 1
EURAUD - 1

JPY

JPYUSD - 85.5
JPYEUR - 7.5
JPYAUD - 3
JPYCAD - 1
JPYGBP - 1
JPYCHF - 1
JPYNZD - 1

GBP

GBPUSD - 78.5
GBPEUR - 16.5
GBPCHF - 1
GBPAUD - 1
GBPJPY - 1
GBPNZD - 1
GBPCAD - 1

CAD

CADUSD - 87.5
CADEUR - 6.4
CADJPY - 2.1
CADGBP - 1
CADNZD - 1
CADAUD - 1
CADCHF - 1

AUD

AUDUSD - 81.3
AUDJPY - 9.8
AUDEUR - 4.9
AUDCAD - 1
AUDGBP - 1
AUDNZD - 1
AUDCHF - 1

CHF

CHFUSD - 75.2
CHFEUR - 18.6
CHFGBP - 2.2
CHFAUD - 1
CHFCAD - 1
CHFNZD - 1
CHFJPY - 1

NZD

NZDUSD - 87.7
NZDJPY - 6.3
NZDEUR - 1
NZDGBP - 1
NZDCAD - 1
NZDAUD - 1
NZDCHF - 1

How do you think this information can be used?
For instance GBP/JPY scores 1% but it moves approx 165-200 pips per day.
What does this tell you.

Nice thread. There is one thing it can tell us for sure and that's where the liquidity is.

Looking at the volume moved through USD based currencies and the percentage of the market (87%) it captures (p.2 of report) I cant help wonder if all the talk about replacing the USD as the worlds base currency over the years was someones idea of a joke.

What's interesting though is how the UK has more currency transactions than anywhere else in the world, including the US which carries about half of what the UK does daily.

Thanks for the thread, fx.

I think what it shows you, is that this pair has no correlation with any other pairs. And can be traded independently, without the influence of other pairs movements.

Example you have a strong USDJPY, but a weak USDGBP, this wouldn't affect the GBP/JPY very much.

These statistics would help, currency strength traders. But if your a pure one pair technical trader, wouldnt have much impact. Although you could use this for hedging, I suppose but even then whats the point.

Yes, that gels with my observations also.
Geppy responds strongly to GBP and JPY news only.

Hi Fxanalysis,

Any possible you can make this indicator for Buyers and Sellers display(percentage display) using this formula below, please?

%Buyers = (current price - lowest price today) / (highest price today - lowest price today)

%Sellers = (highest price today - current price) / (highest price today - lowest price today)

Thanks in advanced.

Attached Image

I think that this information can be used for multiple purposes:

1. If you need to determine currency strength,example, I need to determine if JPY is weak or strong, then I look at pairs that has the highest percentage of influence(JPYUSD(85.5) and JPYEUR(7.5)). These two pair PA or MA will determine(mostly JPYUSD) if JPY is weak or strong. Then if you trade GBP/JPY you need to know if GBP is weak or strong, and repeat the process.
2. If you use indicators on cross pairs, again you must look at what the same indicator is doing in both currency major pairs (with largest influence %) to confirm your signal.
3. If you trade USD pairs, you must consider data from EURUSD,USDJPY ,GBPUSD because they all have large influence on strength of USD. If there is news event in EU ,but you are trading USDJPY, guess what , they might influence USDJPY and other USD pairs as well. If there are not any news but there is a signal that trend is changing in EURUSD or other major pair ,then it may effect other USD pairs.
4. If you are a coder and are creating currency strength indicators or any other indicator that involves multiple currency pairs then you should consider importance of each pair before determining final result.

Regards and good luck!

How do you think this information can be used?
For instance GBP/JPY scores 1% but it moves approx 165-200 pips per day.
What does this tell you.