Why USD news affecting other currency?

bigdolly

2nd Lieutenant
Messages
1,059
They keep US debt because the government is forced to create it to cover trade deficits which is consequence of the dollar bearing the status of reserve currency. Simple math. Dollar is a victim of its status
 

fxoday

Recruit
Messages
367
Actually, USD now only based on trust since 1971 USD not anymore backed up by gold, the currency still uses in a global world because the US is superpower country, but some researcher say if digital money will replace flat money on the next decade like as Deutsche bank predicts 2030 it will occur where cryptocurrency will replaced flat currency
 

bigdolly

2nd Lieutenant
Messages
1,059
One of the biggest reasons is definitely the US debt instruments held by other nations - it amounts to about $7 trillion.
Yeah, USD determines financial conditions in the world = pace of global credit expansion, I guess this paves the way for equity markets too where the risk priced in is an ease of access to credit sources (i.e. borrowing costs)
 
Messages
65
I found out that even if the currency pair is not related to USD, EUR AUD for example, it is still somehow being affected by USD news. My position was suddenly reached stop loss in a few minutes. Why is that?
USD is major currency all over the world that is why changes in its trend affect on other currencies too. All major currency look like they are interrelated .
 
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