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Sentiment graph for selected currencies
Date: 26 July 2018 Category: Currencies |
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We take a look at a graphic showing the sentiment towards a number of countries currencies against the US Dollar and find that most countries currencies have found it though going against the US Dollar. The countries we will look at are:
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So currencies have been performing well against the US dollar? Yeah right.
Well not really. The horizontal graph below shows the sentiment towards various shares listed on the JSE. Sentiment is measured in this case by price increases. The stronger the price increases, the better the sentiment, and the more the price declines the weaker the sentiment.
So how to interpret the graphic?
Light blue: Marginal currency appreciation (strengthening) against the US Dollar since the start of the selected time period
Light blue: Reasonable currency appreciation (strengthening) against the US Dollar since the start of the selected time period
Dark blue: Strong currency appreciation (strengthening) against the US Dollar since the start of the selected time period
Light pink: Marginal currency depreciation (weakening) against the US Dollar since the start of the selected time period
Medium pink: Meaningful currency depreciation (weakening) against the US Dollar since the start of the selected time period
Dark pink: Strong currency depreciation (weakening) against the US Dollar since the start of the selected time period
Note the sentiment shown in the graphic as default is the sentiment over the last 12 months. Users can change the dates at the bottom left of the graphic or select pre-set dates at the bottom right of the graphic.
So how to interpret the graphic?
Light blue: Marginal currency appreciation (strengthening) against the US Dollar since the start of the selected time period
Light blue: Reasonable currency appreciation (strengthening) against the US Dollar since the start of the selected time period
Dark blue: Strong currency appreciation (strengthening) against the US Dollar since the start of the selected time period
Light pink: Marginal currency depreciation (weakening) against the US Dollar since the start of the selected time period
Medium pink: Meaningful currency depreciation (weakening) against the US Dollar since the start of the selected time period
Dark pink: Strong currency depreciation (weakening) against the US Dollar since the start of the selected time period
Note the sentiment shown in the graphic as default is the sentiment over the last 12 months. Users can change the dates at the bottom left of the graphic or select pre-set dates at the bottom right of the graphic.
As mentioned earlier the default date for the graphic above is the last 12 months. And users can see immediately for which currencies sentiment has been positive or negative. Over the last 12 months sentiment was largely negative towards all the currencies mentioned at the start of the article. The South African Rand and Chilean Peso and Chilean Peso had brief periods during the year where the currency sentiment was positive and the currency was stronger than at the start of the selected period but these positive sentiment periods were brief and over two year period all the currencies depreciated against the US Dollar
30 days sentiment
For the last 30 days, sentiment has been positive for:
Looking at sentiment over a short period such as one month is useful and interesting but what does the longer term sentiment look like? We take a look at the image below which shows the sentiment over a 2 year period.
- Mexican Peso
- South African Rand
- Brazilian Real
- Aussie Dollar
Looking at sentiment over a short period such as one month is useful and interesting but what does the longer term sentiment look like? We take a look at the image below which shows the sentiment over a 2 year period.
2 years sentiment
Surprising for South Africans would surely be the strong sentiment towards the South African Rand over the last 2 years. The main reason behind this is the fact that the currency was at record highs two years ago with it trading against the US Dollar at over R15 a dollar. And since then it has gradually strengthened and is currently trading at around R13.25 for a US Dollar.
Sentiment towards the Chilean Peso has been largely positive over the last two years two (and as we showed in our (South-Africa-vs-Chile article there are a lot of similarities between South Africa and Chile). Sentiment towards the Turkish Lira has been overwhelmingly negative with the Lira being lower than it was 2 years ago most of the time over the last two years. Political and economic uncertainty hurting the Turkish currency.
The Mexican Peso has been up and down around the same levels it was two years ago. The graphic shows light colours as well as have relatively low peaks which indicates relatively subdued movements of the currency.
The Brazilian Real had a very good run initially over the last two years, but over the last 6 or so months it has taken an absolute hammering against the US dollar, as political issues, lackluster growth, corruption scandals etc hit the largest economy in South America.
Sentiment towards the Australian Dollar has been mostly positive over the last 2 years, but the light colours and low peaks suggest subdued movements in the Australian Dollar against the Dollar. But nonetheless, the movements of the Aussie dollar against the US dollar has been largely positive for the Aussie dollar (appreciation of the Aussie dollar)
Sentiment towards the Chilean Peso has been largely positive over the last two years two (and as we showed in our (South-Africa-vs-Chile article there are a lot of similarities between South Africa and Chile). Sentiment towards the Turkish Lira has been overwhelmingly negative with the Lira being lower than it was 2 years ago most of the time over the last two years. Political and economic uncertainty hurting the Turkish currency.
The Mexican Peso has been up and down around the same levels it was two years ago. The graphic shows light colours as well as have relatively low peaks which indicates relatively subdued movements of the currency.
The Brazilian Real had a very good run initially over the last two years, but over the last 6 or so months it has taken an absolute hammering against the US dollar, as political issues, lackluster growth, corruption scandals etc hit the largest economy in South America.
Sentiment towards the Australian Dollar has been mostly positive over the last 2 years, but the light colours and low peaks suggest subdued movements in the Australian Dollar against the Dollar. But nonetheless, the movements of the Aussie dollar against the US dollar has been largely positive for the Aussie dollar (appreciation of the Aussie dollar)