1, USD
The dollar is the monetary unit of the United States. More than 80% of international trade and foreign exchange transactions use the US dollar as the pricing currency. The dollar is the most active currency and plays an absolutely important role in international trade and finance.
2. Euro
The euro is the unified currency of the European Monetary Union. This alliance has more than a dozen member countries and a population of more than 300 million. Its supply capacity abroad is higher than that of the United States, so the euro is as strong as the dollar.
3. Pound
The pound is the monetary unit in Britain. 1944 After the Bretton Woods Conference, the US dollar replaced the British pound as the world's financial hegemon, and now the British pound has become the third largest reserve currency in the world.
4. Japanese yen
The yen is the monetary unit of Japan. In economic and trade relations, Japan's trade surplus mainly comes from the United States, while American foreign trade mainly comes from Japan. The yen is still the most important currency in Asia.
5. Swiss franc
Because Switzerland pursues a neutral and non-aligned policy, Switzerland is considered to be the safest place, and the Swiss franc is also known as the traditional safe-haven currency. In addition, the Swiss government's protective policies on finance and foreign exchange have caused a large amount of foreign exchange to flood into Switzerland, and the Swiss franc has become a stable and popular currency for international settlement and foreign exchange transactions.
6. Canadian dollar
Like the Swiss National Bank, the Bank of Canada is characterized by a high degree of independence. For the Canadian dollar, there is a certain correlation with the trend of crude oil. Canada is a major commodity exporter, so many traders and investors will use Canadian dollars to hedge their existing commodity positions or speculate when tracking crude oil market signals.
7. Australian dollar/New Zealand dollar
The Australian dollar interest rate is relatively high in the global market, and the long-term goal of the Reserve Bank of Australia is to maintain price stability and economic growth. Like the Reserve Bank of Australia, the goal of the Reserve Bank of New Zealand is to stabilize prices and promote the realization of inflation targets. Australian dollar and New Zealand dollar are also the favorite currencies of arbitrage traders, because they have the highest yield among the seven currencies on the trading platform. These two currencies are also related to other commodities, especially silver and gold.
8. South African Rand (ZAR)
In some cases, the Federal Reserve Bank of South Africa is the main regulator of creditors, clearing banks and gold. The highest goal of the Bank of South Africa is to achieve and maintain price stability, including intervening in the foreign exchange market when necessary. In addition, if you do foreign exchange transactions, you can also choose agents with foreign exchange rebates, which can greatly reduce transaction costs.
How to choose foreign exchange currency
1 The two foreign exchange currencies with the highest circulation rate are closely related to the euro, with relatively high fluctuations and are greatly influenced by fundamentals, making it easier to judge the trend and more suitable for trading.
2. In the foreign exchange market, the volume of the euro is second only to the US dollar, so the euro is the most important foreign exchange currency in the US dollar index, which is simple and has the strongest regularity.
3. The fluctuation range of GBP/JPY can be said to be one of the largest currency pairs, also known as the king of foreign exchange. In foreign exchange transactions, the pound fluctuates greatly every day. For beginners, I'm afraid I can't adapt to the manipulation well, and it is not recommended to get started.
The pound is a high asset currency with high interest rate, while the yen has maintained almost zero interest rate. Investors in the market can take advantage of the spread between the two countries to carry out carry trade, thus attracting more investors' attention. As far as the yen is concerned, it is a safe-haven currency.
For investors with certain experience and sufficient funds, the first-line currencies such as pound, euro and Swiss franc are absolutely in line with your lively mentality without fear of risks.
6. If the investor is a conservative investor who is unwilling to take too much risks and loves to do long-term trading, high interest returns and some commodity currencies, such as Australia, New Zealand and Canadian dollars, are more appropriate.