Forex markets in 2023
In a year dictated by roaring inflation and rising interest rates, currency pairs have hit historic extremes. 2023 has been a strong year for US dollar, and a stronger year for British pound. Japanese yen, on the other hand, has lost value against USD, GBP, and EUR.
Below, we ranked the most popular forex pairs by performance in 2023 – measured by pips gained from the start of the year.
1. GBP/JPY
The pound reached a new high against yen not seen since 2015; the pair appreciated more than 2,000 pips.
2. EUR/JPY
The euro hit a new high against yen since 2008; EUR also appreciated more than 2,000 pips and trades above 160.00.
3. USD/JPY
US dollar was able to gain on yen once again after a solid 2022; USD gained more than 1,700 pips and trades above 150.00 – the approximate high for the last 30 years.
4. GBP/USD
The pound eked out small gains against the dollar this year so far – 235 pips – which could say a lot given USD’s strength over the years; 1.2300 is a relatively normal price level historically.
5. USD/CAD
The US dollar appreciated slightly against its Canadian counterpart – 230 pips; USD/CAD trades near highs for the last 20 years around 140.00.
6. EUR/USD
The euro held in relatively unchanged against the dollar on the year; but EUR/USD is still trading near 20-year lows around parity levels reached in 2022.
7. EUR/GBP
The pound was the stronger of the two major European currencies as EUR/GBP fell about 150 pips; the pair is relatively midrange historically.
8. USD/CHF
Swiss franc had an under-the-radar solid year appreciating against the dollar more than EUR or GBP – USD/CHF is down almost 200 pips this year.
9. EUR/CHF
Euro lost 300 pips to the franc as CHF caught a slight fear-based bid given Switzerland’s significantly lower interest rates.
10. AUD/USD
Australian dollar lost more ground to USD in 2023, and much of it was likely owed to growing economic fear in Australia and China.
