Currencies PRO and CON
USD Positive points: -Main reserve currency for global transactions -Currency of the strongest world economy - The most important currency in the world - Considered a safe investment Negative points: - Attempts to weaken the US dollar to combat the trade deficit. - Volatility due to information warfare against Fed countries that stop using US dollars for international transactions. GBP Positive points -It is one of the most liquid currencies -10-year bond rate higher than German bonds -Potential trade agreement between US and UK after Brexit. Negative points -Current account deficit. - Inflation below the target of 2% - Uncertainty due to the low political settlement of Brexit with the European Union CAD Positive points -USA is one of the main trading partners of Canada. -Currency pegged to the price of commodities , mainly oil Negative points -Interest rate 1.75% below the Fed's interest rate, not profitable for carry trade -High inflation , which can lead to higher interest rates - Weakness due to falling oil prices. - Latent risk: The United States is imposing import duties. NZD Positive points -Australia is their main business partner -Currency is tied to goods - tends to increase when there is an inclination to take risks Negative points - Impact due to a slowdown in Australian economic growth - Bearish interest rate cycle since late 2016 EUR Positive points: - Belongs to a very powerful economic zone with great potential. -It is an international reserve currency. Negative points: -Inequality of public finance between member countries - Interventions by the ECB to pump liquidity at a 0.00% interest rate. -Uncertainty of the trading future amid Brexit -The threat of a weakening economy CHF Positive points -Strong correlation with gold -Safe Haven currency in the face of uncertainty and inflation -Direction for private bank investment Negative points -Currently has a negative reference rate of -0.74% - The economy has very low inflation JPY Positive points -Slight increase in inflation - This is a currency that strengthens in the face of uncertainty scenarios Negative points -Continuous increase of assets in the Bank of Japan's Balance Sheet -Weakness in carry trade scenarios -Negative interest rate at 0.10% AUD Positive points -It can be strengthened in the face of inflationary pressures and uncertainties. -Currency correlated with gold Negative points -Constant decrease in the interest rate since the end of 2010 -Weakness in the US-China trade war -Dropping prices in the real estate market
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