US dollar.
The US dollar is the most sought-after currency in the world; the majority of all transactions in the global economy are conducted in US dollars. The currency has enormous liquidity, which allows it to be exchanged literally anywhere in the world.
Today, there is over $1 trillion in cash in circulation. Only 30% of this money circulates within the United States.
Despite talk of a possible default by the US financial system, the dollar has not lost its position in the financial world. It is widely used as a means of payment, accounting for approximately 40% of the total.
The dollar is also used to calculate the cross exchange rates of all global currencies against each other.
In addition, this means of payment is the main one for payments for energy resources, precious and ferrous metals on all global exchanges.
According to statistics, more than 55% of national bank reserves are still held in US dollars, although it should be noted that there is a negative trend towards replacing this currency in reserves with more solid assets such as the Swiss franc or the pound sterling.
Trading US dollars on Forex.
It would be surprising if, despite its immense popularity, this currency wasn't used for speculation on the forex market. The actual volume of all transactions in US dollars accounts for approximately 40% of all transactions, which translates to several trillion dollars.
The main currency pairs using it are:
EUR/USD – Euro/US Dollar
GBP/USD – British Pound/Dollar
USD/CAD – US Dollar/Canadian Dollar
USD/CHF – Dollar/Swiss Franc
USD/JPY – Dollar/Japanese Yen
The exchange rate of this currency is characterized by its instability, often jumping following the release of key US economic indicators. This allows forex traders to profit significantly from the trend.
This instrument is also quite sensitive to changes in energy and gold prices; there is a clear correlation between these exchange instruments, and 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 also has the highest exchange rate dynamics, due to the timing of financial news releases.
For forex beginners, the best initial instrument is the USD/CHF currency pair. Long trades are easiest to open after negative news regarding the dollar. Playing for a stronger market is less predictable and more risky.
