If you accumulated the % change of the major currencies vs each other to determine the strongest and the weakest for the month, the CHF was the clear favorite for the strongest, while the CAD was the weakest.
The strongest and weakest currencies for January 2015
Obviously, the catalyst for the CHF strength was the taking away of the peg versus the Euro at 1.2000. The subsequent surge in the CHF sent the EURCHF as low as 0.8500 (-29% for the month ) and the USDCHF to as low as 0.7403 (-25.5% for the end of year level). Those two currency pairs ended the month down just -7.45% and -13.68% respectively (vs end of December levels). So there obviously was a significant correction of the huge moves on what was a historic day in the currency markets.
The CAD was the weakest currency for the month. It was under pressure as a result of declining prices and a surprise Bank of Canada interest rate cut.
The NZD (dovish comments from the RBA and lower commodity prices), EUR (60 billion of QE per month announced) and AUD (lower commodity price and increased speculation they may be cutting next) were also weaker in January.
The JPY benefited from corrective technical forces, and a belief that lower oil prices would be a economic stimulus to the energy dependent nation. The USD also benefited from having the strongest economy and perhaps the benefit of lower energy. The Fed did not take away the chance for a rate hike around mid year from their interest rate statement.
