7 Currencies considered to be safest to fight for
As a trader who trades in the market with high liquidity, we also need to know what aspects that support you in trading. The forex market has been inhabited by trillions of dollars every day by millions of people. Many currencies are traded in the forex market. Even if you want, all currencies in this world can be traded.However, his name is trading, if you are a seller then there must be a buyer, right?
Not all buyers want to buy any currency. The buyer must have previously done which currency analysis is profitable to buy. If the currency you are trading is not profitable enough, then it will be difficult to find a buyer. This is why traders should know which currencies can deliver benefits to them. For those of you beginners traders, the following 7 currencies that you can make your mainstay currency in trading in the forex market.
7 Currency – USD (United States Dollar)
USD is the most easily traded currency every day by everyone. USD is often disbursed with other major currencies as well as an intermediary in triangle currency transactions. This may be due to the USD being the unofficial global currency reserve that almost every central bank and investment institution in the world. USD is also often used as the official currency and the opposite of the currency of the country known as the dollarization. USD is widely accepted in many countries and becomes an alternative to informal payments.
Another thing that can be done by the USD is kegunaanya as a standard currency for most commodities such as petroleum and precious metals such as gold.Traders should understand that this commodity is not only subject to fluctuations in its value but also because it is relative to the USD at a price that is also quite sensitive to inflation and US interest rates that are also directly affected by the dollar.
EUR is actually a new currency in the currency call. The official currency of the country in Europe was officially introduced in the market in 1 1999 with currency coins and coins. But its existence is able to lead the EUR into the second currency after a heavily traded USD. EUR also became the world’s second largest reserve currency. Not only the official currency in the eurozone countries, some countries in Europe and Africa are also pegged the currency against the EUR because it is considered to be a currency pegged to the USD to stabilize the exchange rate.
7 Currency – JPY (Japanese Yen)
JPY is the most easily traded currency of the Asian region and is considered a proxy for underpinning the strength of export of economic manufaktor in Japan.Every Japanese economy moves, then the Yen will also move. This has led many to use JPY to measure the overall situation in Pan-Pacific region such as South Korea, Singapore and Thailand whose currency is traded in small quantities in the global forex market. JPY is also famous among forex with its role as Carry Trade .
7 Currency – GBP (British Pound)
GBP became the fourth most traded currency in the forex market. GBP becomes a large reserve currency because of its relative value compared to other global currencies. Although Britain was once a member state of the EU but Britain chose to use GBP to maintain pride in the history of the pound and maintain control of domestic interest rates . This makes the pound one of the purest games in the UK and became the political stability of his government. GBP can make relatively high value for the currency of the partner then GBP is considered to be a very liquid currency in the forex market.
7 Currency – CHF (Swiss Franc)
CIIF is considered a neutral currency like Switzerland. CIIF is considered a safe currency in the forex market because of its tendency to move in negative correlations to more stable commodity currencies such as CAD and AUD along with US Treasury yields. The Swiss National Bank is known to be quite active in the forex market to ensure that CIIF trading is within a tight range to reduce volatility and keep interest rates stable.
7 Currency – CAD (Canadian Dollar)
CAD also known as Loonie became the most famous commodity currency in the world. This implies that CAD becomes a currency that moves with commodity markets such as petroleum, precious metals and minerals. Canada which is a major exporter of commodities makes Loonie has the volatility of the underlying price movement especially on crude oil. Traders speculate trading with CAD to protect ownership of contracts.
The 7th currency that a trader needs to have is AUD or Australian dollars. AUD offers one of the highest rates that can withstand price stability and economic strength with long-term plans. AUD is also the focus of Carry Trade by offering high yields. AUD is closely related to commodity currencies in the form of metals such as gold and silver.