Trading Forex in Baskets to diversify trading risk for both, speculative trading or hedging Forex risk by 
In my earlier post of December 21, I got into basic Currency ETF’s (Exchange Traded Funds). http://blogs.fxstreet.com/forexhedge/2008/12/21/currency-etfs/
There are different way’s to trade Forex, like Futures and now ETF’s which are mainly traded on US exchanges and quoted in US Dollars.
In the table below we do a first step in ranking the strongest/weakest currency shares and we see the JPY as the strongest (green) and the GBP (red) as the weakest.
The figure 99 for the JPY means not a buy signal but simply the strongest in the basket in the table below, while the weakest, the GBP in red (13) is not a sell signal but the weeakest in the basket.
Each column in the table below is a week and it’s good to see how long they are already the strongest/weakest.
The second step is to look at the next table below.
The green column is the weekly trend indicator which is for the JPY already 67 day’s green and the three month change is now at 13.6%, so very strong already for a long time, while the opposite is for the GBP with a red weekly downtrend already for 106 days and a three month change of 17.9%.
Of course this approach is different, trading currency shares instead of Spot Forex, but not all traders have the same objective for trading Forex, think about hedging corporate Forex risk.
