Forex market in 2023
In a year dominated by rampant inflation and rising interest rates, currency pairs reached historic extremes. 2023 was a strong year for the US dollar and a strong year for the British pound. Meanwhile, the Japanese yen declined in value against the US dollar, pound, and euro.
Below, we’ve ranked the most popular forex pairs by performance in 2023 (measured in pips gained year-to-date).
The pound hit its highest value against the yen since 2015. This pair cost him more than 2,000 pips.
The euro hit a new high against the yen since 2008. The euro also rose over 2,000 pips, trading above 160.00.
After a strong 2022, the US dollar was able to appreciate against the yen again. The US dollar has risen over 1,700 pips and is trading above 150.00, near its highest level in the past 30 years.
Sterling has seen modest gains against the dollar so far this year (235 pips), but given the strength of the US dollar over the years, this could be saying a lot. 1.2300 is a relatively normal price level historically.
The US dollar rose slightly against the Canadian dollar – 230 pips. USD/CAD is trading near a 20-year high around 140.00.
The euro has remained almost unchanged against the dollar since the beginning of the year. However, EUR/USD is still trading near a 20-year low, near the parity level it will reach in 2022.
Pound was the stronger of the two major European currencies as EUR/GBP fell by around 150 pips. This pair has historically been relatively mid-range.
8. US dollar/Swiss franc
The Swiss franc had an unspectacularly solid year, gaining more against the dollar than the euro or British pound. USD/CHF is down almost 200 pips this year.
9. Euro/Swiss Franc
The euro fell 300 pips against the franc as the Swiss franc was caught in a bit of a fear-based bid following a sharp drop in interest rates in Switzerland.
10. Australian Dollar/US Dollar
The Australian dollar weakened further against the US dollar in 2023, much of which can be attributed to growing economic uncertainty in Australia and China.