In the last few months, it seems that all three major currencies (USD, GBP and AUDUSD) have been trading down. In fact, we believe that the next six months will see more volatility in the currencymarkets. If you are new to Forex then this article will hopefully give you some tips on what you need to know about how to properly trade these currencies. We like to call them “currency pairs” but they are actually made up of three currencies which are all not the same.
Let’s look at the US Dollar, The Euro and The British Pound. They all trade with the same amount of interest, but when it comes to one currency being stronger than the other then they become Currency Quotes.
The US Dollar is known as the world’s reserve currency. This means that if you own a certain amount of US Dollars and you want to purchase something from a company in another country then they have to pay for the product in US Dollars. If they do not, then they will pay you in something else. This is what makes the US Dollar so popular, because it is used worldwide.
The Euro has a much lower value than the US Dollar. Because of this, the Euro is much more popular for international transactions. There are many European countries that are using the Euro.
The last currency pairs we are going to discuss are the British Pound and the Australian Dollar. The British Pound is known as the “City Pound” because of the large number of traders in this country. The Australian Dollar is also very popular, as it has a larger than normal spot price compared to the price in the USA. Because of this, this currency pair trades very differently than the others.
Before I went to school I was not very familiar with currency pairs. Most of the currency pairs that I knew were major economies and the many different countries that they belong to.
Although it may sound complicated, currency pairs are actually easy to learn and they all have the same level of interest. What it does take is understanding how the currencies have changed since the last time they traded.
As mentioned, all three of these currency pairs were trading down for most of the year. This means that most of the currencies had appreciated in value, which means that these currencies are known as “Euro Candidates” and these countries are considered Euro Candidates.
The next currency pair to study is the EuroCandidate. If you have read our previous articles, then you would know that this currency pair is extremely strong and you can invest in this currency.
The strength of this currency is due to the fact that the whole amount of interest in the country is spread over a larger area of the globe. Because of this, the amount of exchange rates is higher than the majority of other countries.
Now let’s look at the USDCAD and the GBPCAD. Since the United Kingdom has a lower GDP per capita than many other countries, the exchange rate between the USD and the GBP has been on the low side.
One of the main reasons why the currency is weak is because the population is small. The British people live much more money than the average American, therefore the exchange rate between the USD and the GBP will be lower.