Bank of America Merrill Lynch Research dissects time zone analysis to identify dominant geographic regions for all USD, EUR and JPY G10 pairs.
"When in Rome, do as the Romans do: follow the dominant local trend...US locals are bullish USD and bearish CAD. UK locals are bearish EUR and bullish GBP. Asia locals are bearish JPY," BofAML notes.
"USD rising in US hours: The top five locally traded currencies in US hours this year are: USD/CAD, EUR/CAD, CAD/JPY, EUR/CHF and EUR/USD.
EUR falling in UK hours: The top five locally traded currencies in UK hours this year are: EUR/SEK, GBP/USD, USD/SEK, EUR/USD and EUR/GBP
JPY falling in Asia hours: The top five locally traded currencies in UK hours this year are: NZD/JPY, AUD/JPY, CAD/JPY, CHF/JPY and USD/JPY," BofAML adds.