As you can see, in addition to the major currencies involved in the US dollar, cross currency pairs provide you with more trading opportunities. Cross currency pairs enrich traders' trading choices, which means their trading opportunities are greatly increased. We usually see that the trend of cross currency pairs is more pronounced than the straight market. you ...
We assume that the Federal Reserve announces that it will take interest rate hikes. The buying of the US dollar against major currencies is rapidly emerging in the market. euro/USD, GBP/The US dollar fell, while the US dollar/Swiss francs and US dollars/The yen has risen. You choose to short the euro/The US dollar, and I'm glad to see that the trend of the exchange rate keeps you profiting, but, ...
Even if you don't plan to trade cross currency pairs, but only want to trade the main US dollar direct, you can still use cross currency pairs to help you make better trading decisions. Here is an example. Cross currency pairs can provide clues to the relative strength relationship between each major currency pair. For example, when you see the euro/beautiful ...
Besides the US dollar, the euro and Japanese yen are the most frequently traded currencies. Meanwhile, like the US dollar, some countries also hold euros and yen as their foreign exchange reserves. So, the cross currency pair of the Japanese yen and the Japanese yen has become the most liquid currency pair outside of the US dollar's direct trading. Trading Euro currency against the most common Euro cross currency ...
Sometimes, institutional traders are not able to trade specific cross currency pairs because the market does not have enough liquidity to execute their orders. In order to execute the transactions they want, they must create a 'synthetic currency pair'. So, what is a synthetic currency pair? Assuming you have conducted relevant analysis and have ...
If there are strong economic data releases from Australia, you are likely to consider buying the Australian dollar. Your first reaction may be to buy Australian dollars in the foreign exchange market/USD. But what if at the same time, the recent economic data released by the United States also shows strong performance? AUD/The US dollar exchange rate is likely to fluctuate slightly. One of your options is, ...
Although the euro and yen cross currency pair is the most liquid cross currency pair, the vast majority of cross currency pairs do not include the euro or yen. We refer to these currency pairs as' very common cross currency pairs'. If we are at school - wait a moment, we are actually at school! The main currency pairs are like that ...
By selling low interest rate currencies against high interest rate currencies, you can profit through interest rate spreads and exchange rate fluctuations. It's like you got a cupcake with scattered little candies on top! It's greeting you! Imagine if the taste of it is particularly delicious. Cross currency alignment, there are some ...
Due to the fact that the vast majority of currency pairs in the foreign exchange market involve the US dollar, the publication of the vast majority of reports or data may lead to significant fluctuations in the US dollar related currency pairs. The United States has the world's largest economy, so speculators will react strongly to the reports released by the United States, despite the fact that in the long run, the number of reports ...
Exceeding in the foreign exchange market90%All transactions involve US dollars. This is because the US dollar is the global reserve currency. You may ask yourself, "Why is the global reserve currency the US dollar instead of the pound or euro?" Most agricultural and industrial commodities, such as oil, are priced in US dollars. If a country needs to purchase stones ...
