Welcome back to another edition of the Monthly Currency Strength Report here at Takezo Trading.
As always, I’m comparing the major global currencies against gold—a benchmark I continue to use because of its unique neutrality. Gold isn’t manipulated by central bank policies or political agendas. It’s the most objective measuring stick we have when it comes to gauging the true strength or weakness of fiat currencies. By viewing the world through this lens, we strip away the noise and get down to what really matters: how currencies stack up against each other in real, tangible purchasing power.
Let’s dive into the numbers for July 2025.
July Snapshot: USD Takes the Spotlight
July 2025 saw a dynamic shift in currency rankings, with the US Dollar (USD) flexing its muscles to claim the strongest position. The Canadian Dollar (CAD) and the Australian Dollar (AUD) followed closely behind, showcasing solid performances against gold. Rounding out the middle of the pack were the Swiss Franc (CHF), the Euro (EUR), and the New Zealand Dollar (NZD). The British Pound (GBP) found itself struggling, with the Japanese Yen (JPY) trailing as the weakest currency for the month.
The strength of the USD was especially apparent against JPY, demonstrating robust momentum throughout July. Conversely, GBP weakness was stark when paired against a stronger CAD, highlighting clear trends for market observers and investors alike.
Three-Month Trends: CHF Still Strong
Expanding our lens to the past three months (May–July 2025), we observe consistency in the strength of the Swiss Franc. Despite July’s shift favoring the USD, CHF remains the strongest currency overall, closely trailed by EUR and AUD. The USD settles comfortably mid-pack in this broader view, joined by CAD and NZD. Unfortunately, GBP and JPY continue to linger at the bottom of the strength rankings, emphasizing ongoing economic challenges in these regions.
A standout chart in this three-month overview is CHFJPY. The Swiss Franc’s dominance over the Yen is remarkable, showing a near-parabolic trajectory upward. This dramatic movement highlights the market’s clear preference for stability and safety—hallmarks of the CHF—over the persistently weak Yen.
Six-Month Insights: EUR Dominance
Taking a broader perspective from February through July, we see that the Euro emerges as the strongest currency overall, followed closely by the steadfast CHF. The NZD surprises by securing a strong third place. Meanwhile, currencies like JPY, GBP, and AUD present middling performances, with CAD notably weaker. The USD, despite its July resurgence, remains at the bottom in this longer timeframe.
An insightful observation from this period is the remarkable performance of EURUSD. Investors adopting a buy-and-hold strategy from February to July would have seen substantial profits, underscoring the underlying strength and market confidence in the Euro relative to the Dollar.
Year-to-Date Currency Strength Overview
Considering the cumulative performance from January to July 2025, the currency strength rankings reveal important long-term trends:
- Euro (EUR): Demonstrating resilience and market appeal throughout the year.
- Swiss Franc (CHF): Continues to embody stability and strength.
- Japanese Yen (JPY): Surprisingly resilient in the broader yearly context despite recent struggles.
- British Pound (GBP): Battling challenges but maintaining mid-level stability.
- Australian Dollar (AUD): Reflecting moderate strength supported by commodity resilience.
- Canadian Dollar (CAD): Steady but lagging behind peers.
- US Dollar (USD): Struggling overall despite a notable July rally.
Final Reflections
Analyzing currencies against gold isn’t just academic—it’s practical. It provides actionable insights, helping traders and investors pinpoint underlying economic strengths, risks, and potential shifts. July 2025 has underscored the dynamic nature of currency markets, with the USD reminding us how quickly fortunes can change, while currencies like CHF and EUR illustrate the power of consistency and market trust.
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Thank you for joining this month’s deep dive. Stay vigilant and informed, as clarity always beats volatility.
Until next time,
Takezo Trading