Why USD news affecting other currency?

Naktilar

Recruit
Messages
9
It happens because of the fact that all of the international trade is executed in USD that is why all the countries depend on the prices for American dollars. All the countries are busy with import or export in this or that way, that is why their own currencies depend on the USD. Some 'experts' claim that American dollar will lose its current position in the nearest future, but I doubt that it will happen sooner than 50 years or so.
 

Shalirad

Corporal
Messages
126
The US dollar definitely is the strongest currency, but I allege that all currencies affect each other. Aside from factors such as interest rates and inflation, the currency exchange rate is one of the most important determinants of a country's relative level of economic health. Exchange rates play a vital role in a country's level of trade, which is critical to most every free market economy in the world. For this reason, exchange rates are among the most watched, analyzed and governmentally manipulated economic measures. But exchange rates matter on a smaller scale as well: they impact the real return of an investor's portfolio.
 

JimmyRozza

Sergeant
Messages
228
It's the 'daddy'. In the same way, Bitcoin is the 'daddy' of crypto.
All markets are inter-connected in some way, shape or form.
 

fxoday

Recruit
Messages
726
It's the 'daddy'. In the same way, Bitcoin is the 'daddy' of crypto.
All markets are inter-connected in some way, shape or form.
Yes maybe, in many instruments use USD as the main currency converter, and many countries also use USD as reserve currency, maybe about 40% reserve currency using USD. Bitcoin is the first digital coin-based blockchain, its cryptocurrency in general, Bitcoin fall all crypto assets maybe fall, but I think the most impact is about cryptocurrency news and regulation.
 

TareqS

Sergeant
Messages
165
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?
The USD is considered the strongest currency. Most of the other individual currency is somehow related to the USD. Thus, if there is a massive movement in the USD, it would have an impact to most of the currencies in the market to some extent.
 

Petezaa

Private
Messages
219
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 the main traded currency on the market - it can impact any currency. That's why it's important to stay away from the market on big news releases, such as NFP and bank rates.

Traders/banks hedge against the USD in general.

CHF/JPY is also a safe haven and can be affected.
 

holycow

Master Sergeant
Messages
382
USD is the king or we can say like a benchmark when it comes to forex trading so whenever it fluctuates it will surely topple other currencies or underlying commodities/assets.
 
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