Exactly and they also trade in USD like as far as im aware China buy a lot of their commodities in USD
Why USD news affecting other currency?
- Thread starter Azlan00IM
- Start date
Exactly and they also trade in USD like as far as im aware China buy a lot of their commodities in USD
Etedus12
Recruit
- Messages
- 211
It seems to me that there are three assets that affect almost all trading in the forex market.
The first asset is of course the dollar and it is in relation to $ the value of the majority of assets. The second asset is gold and the third asset is oil.
We should note that in some pairs the US dollar is the base currency and in some pairs, it is a quoted currency: this is how it has been historically done and we should just take it. As well as the fact that the USD affects other currencies, same as USD news.
Knowing whether the dollar is the base or quoted currency of the pair, a trader can simply omit to mention the dollar in a currency pair and say that he "bought the pound" or "sold the yen". It will be clear to everyone what operation the trader performed. But it is better to say "sold the dollar against the yen.
The first asset is of course the dollar and it is in relation to $ the value of the majority of assets. The second asset is gold and the third asset is oil.
We should note that in some pairs the US dollar is the base currency and in some pairs, it is a quoted currency: this is how it has been historically done and we should just take it. As well as the fact that the USD affects other currencies, same as USD news.
Knowing whether the dollar is the base or quoted currency of the pair, a trader can simply omit to mention the dollar in a currency pair and say that he "bought the pound" or "sold the yen". It will be clear to everyone what operation the trader performed. But it is better to say "sold the dollar against the yen.
Dreeband
Recruit
- Messages
- 1
greenbacks are considered to be the currency of the world economy, that's why the news about us dollar affects other currencies. US dollar is the most powerful currency because all the transaction around the whole world are being conducted with a help of this currency. Countries pay for gas, oil, commodities and other things in dollars.
the main reason was the refusal from the old currency system, which implied that all the transactions are being executed with a help of gold. the system was denied and the us dollar replaced the gold.
these days all traders watch for the dollar and its price change in relation to their national currency.
the main reason was the refusal from the old currency system, which implied that all the transactions are being executed with a help of gold. the system was denied and the us dollar replaced the gold.
these days all traders watch for the dollar and its price change in relation to their national currency.
pashaev
Sergeant
- Messages
- 195
More precisely, the US dollar did not replace gold, but ceased to be backed by gold. Instead, it is provided by business activity.
Kelemeena
Private
- Messages
- 21
Unfortunately... or fortunately so.
The U.S. dollar is the main currency in the world. All of the world's currencies are tied to it, so news that affects the dollar can affect the currency in your country.
Once upon a time, everything was tied to gold. It was the so-called "gold standard".
I think that was the right thing to do. I mean, there's a reserve currency.
The U.S. dollar is the main currency in the world. All of the world's currencies are tied to it, so news that affects the dollar can affect the currency in your country.
Once upon a time, everything was tied to gold. It was the so-called "gold standard".
I think that was the right thing to do. I mean, there's a reserve currency.
pashaev
Sergeant
- Messages
- 195
Gold is a fossil. It can be mined, unlike the dollar, which can only be obtained under %.
Similar threads
