Trading the right currency

I have always been interested in it foreign exchanges. I was thinking about a way of visualizing recent trends in currency rates. Following how the euro has fallen since last year, I thought it was appropriate to come up with a table that would show both the exchange rate for a list of preselected currencies and also the recent trend in the evolution of the exchange rate.

The picture above shows the rules for exchange rates for the 3rd of August 2022. Now in order to add the other information (the evolution of the value of those exchange rates over a custom period of time), we can use linear regression.

Let's take a custom time interval, between 3rd of July and 3rd of August 2022. The idea is that we can use this time interval to predict how the trend will keep on going and buy the bet on the right exchange rate.

We can obtain a graph by plotting the exchange rate between two currencies (let's say the US dollar (USD) and the Japanese Yen (JPY)) between the 3rd of July and the 3rd of August 2022. The idea is that we can use this time interval to predict how the trend will keep on going and bet on the right exchange rate.

The picture above shows the regression line in blue. Y0 is the first predicted value and YN is the last one. We can use the formula $$ \frac{Y_N- Y_0 }{Y_0} $$ to find out the percent change of the exchange rate for the custom time period. If it's positive, then it means the evolution of the exchange rate is on a right track. The higher the value, the better.

Then, we can use a color map to reflect those values and we superimpose that color map onto the table found earlier. This gives us the final result here below.