Other freely convertible foreign currencies other than the US dollar, such as euro, pound, Australian dollar, Japanese yen, Swiss franc, Hong Kong dollar, etc.
commodity money
The so-called commodity currencies mainly involve the resources and export tendency of the countries to which these currencies belong. Australian dollar and Canadian dollar are typical commodity currencies. The main feature of commodity currency is high interest rate, and exports account for a high proportion of GDP. The main producers and exporters of important primary products, the currency exchange rate changes in the same direction as the price of commodities or gold.
Australia has an absolute advantage in the international trade of industrial products such as coal, iron ore, copper, aluminum, wool and cotton textiles, so the rise in the prices of these commodities has a great positive impact on the Australian dollar. In addition, although Australia is not an important producer and exporter of gold, the positive correlation between Australian dollar and gold price and oil price is obvious. Especially in 2007, the prices of gold and oil rose sharply, pushing up the price of Australian dollar all the way. In addition, the Australian dollar is a high-interest currency, and the change of interest rate prospect in the United States and the yield of government bonds reflecting the interest rate prospect also has a great influence on it.
Canada is the country with the highest dependence on foreign countries among the seven western countries, with exports accounting for 40% of its GDP, and its export products are mainly agricultural products and seafood. In addition, the Canadian dollar is a very typical dollar group currency (dollar group refers to those countries with very close economic relations with the United States, with Canada, Latin American countries and Australia as the main representatives), and 80% of its exports are from the United States, which is highly dependent on the American economy. In terms of exchange rate, the trend of Canadian dollar against major currencies is basically the same as that of US dollar against major currencies. For example, the euro keeps a good isotropy against the Canadian dollar and the euro against the US dollar, but only when the US dollar generally falls, this connection gradually weakens.
Speculative currency
Both the pound and the yen are speculative currencies, which are located on both sides of Eurasia and are island countries. The pound was once the world currency, but now it is the most valuable currency. Because of its high exchange rate against the US dollar, it fluctuates greatly every day, especially its trading volume is far less than that of the euro, so its currency characteristics are characterized by strong volatility. Moreover, as the earliest foreign exchange trading center in London, the skills and experience of its traders are top-notch, and these trading skills are well reflected in the trend of the pound. Therefore, compared with the euro, there are many human factors, especially short-term fluctuations, and the "deception" of those traders to inexperienced investors can be described as "tried and tested". Therefore, the short-term operation of the pound is the touchstone to test investors' skills, and those investors who lack experience and skills had better stay away from the pound.
Because of Japan's small domestic market and export-oriented economy, especially the economic recession in the past decade, exports have become the lifeline of domestic economic growth. Therefore, it is Japan's usual foreign exchange strategy to intervene in the foreign exchange market economically, so that the yen exchange rate will not be too strong and maintain the competitiveness of export products. The Bank of Japan is the central bank that intervenes in the exchange rate most frequently in the world. Japan has abundant foreign exchange reserves and strong ability to intervene in the foreign exchange market. Therefore, it is of course necessary for foreign exchange investors to pay attention to the Bank of Japan. Japan's intervention in the foreign exchange market is mainly verbal intervention and direct entry into the market. Therefore, the comments of officials of the Bank of Japan and the Ministry of Finance have a great influence on the short-term fluctuation of the yen, which is the focus of short-term investors and the difficulty of short-term operation of the yen.
Safe haven currency
Because countries in Eurasia crisscross and there are many international disputes, but the United States has an innate geographical advantage, so the United States played a hedging role in both world wars, but the traditional safe-haven currency is the Swiss franc. Switzerland is a traditional neutral country, and the Swiss franc is also a traditional safe haven currency. In the period of political turmoil, it can attract the inflow of safe-haven funds. In addition, the Swiss Constitution once stipulated that each Swiss franc must be supported by 40% gold reserves. Although this provision has expired, the Swiss franc still has a certain psychological connection with the price of gold. The rise of gold price can drive the rise of Swiss franc to some extent.
Euro-currency
The currency issued by a country geographically belonging to Europe belongs to the European currency. The euro accounts for 57.6% of the US dollar index, and its currency volume is the largest. Therefore, the euro can basically be regarded as the rival currency of the US dollar, and investors can refer to the euro to judge the strength of the US dollar. The proportion of the euro is also reflected in its currency characteristics and trends. The euro is the most stable currency among the major non-American currencies because of its large ratio and large trading volume. Just like large-cap stocks in the stock market, it often drives European currencies and other non-American currencies to play the role of "leader". Therefore, it is quite advantageous for beginners to choose euro as the main operating currency when entering the market.
US currency
American currency is also a key currency group that needs attention. The so-called dollar group refers to countries with very close economic relations with the United States, mainly including countries that have implemented free trade zones or signed free trade agreements with the United States, with Canada, Latin American countries and Australia as the main representatives. At the same time, Singapore in Asia will become the group currency of the United States. As we all know, the United States and Singapore have signed a bilateral free trade agreement, and Singapore's economic dependence on the United States will further increase in the future.