U.S. dollar.
The American dollar is the most popular currency in the world, the bulk of all transactions carried out in the global economy take place in US dollars, the currency has simply enormous liquidity, which makes it possible to exchange it literally in any corner of the globe.
Today, there is a money supply of more than 1 trillion US dollars in cash circulation. At the same time, only 30% of this amount rotates in the United States of America.
Despite talk about the possibility of a default of the US financial system, this currency has not lost its position in the financial world; it is widely used as a means of payment, in relative terms its share is about 40%.
The dollar is also used to calculate the cross rates of all world currencies in relation to each other.
In addition, this means of payment is the main one for payments for energy resources, precious and ferrous metals on all world exchanges.
According to statistics, more than 55% of the reserves of national banks are still in US dollars, although it should be noted that there is a negative trend towards replacing this currency in reserves with harder assets, such as the Swiss franc or pound sterling.
Trading US dollars on Forex.
It would be strange if, despite its enormous popularity, this currency was not used for speculation on the forex currency exchange. The actual volume of all transactions in US dollars is about 40% of all transactions performed; in conversion, this amount is equal to several trillion dollars.
The main currency pairs with its use are:
EUR/USD – Euro/US Dollar
GBP/USD – British Pound/Dollar
USD/CAD – American Dollar/Canadian Dollar
USD/CHF – Dollar/Swiss Franc
USD/JPY – Dollar/Japanese Yen
The exchange rate of this currency is characterized by its instability; it often jumps after the publication of data on the main indicators characterizing the state of the United States economy. This allows Forex traders to make significant profits from trend movements.
This instrument is also quite sensitive to changes in energy and gold prices; there is a clear correlation between these exchange instruments; this factor serves as the basis for many trading strategies .
The highest turnover in US dollars is observed during the American and European trading sessions, where this currency has the highest dynamics of exchange rate movement, the reason for this is the timing of the release of financial news.
For forex beginners, the best instrument for the first time will be the USD/CHF currency pair; the easiest way is to open long trades after the release of unfavorable messages regarding the dollar. Strengthening plays are less predictable and riskier.