📕
A Trader Life Blog
  • Journey of a trader
  • Financial Markets
    • Financial Markets
      • Definition
      • Bonds
      • Crypto
      • Commodities
      • Futures
      • Forex
      • Stock market
    • Players
    • Tools
      • Overview
      • Technical analysis
      • Fundamental Analysis
  • TRADING STRATEGIES
    • Description
    • Binary options trading
      • Overview
      • Types of binary options trades
      • More details
      • Binary options trading strategies
        • Multiple bars High or low Binary Options Strategy
      • Glossary
    • Candlesticks
      • Candlesticks description
    • Chart patterns
      • Chart patterns description
    • Forex Scalping
      • Scalping description
    • Support and resistence
      • Support and Resistence description
    • Trend Following
      • Trend following description
  • Ideas
    • Options ideas
    • Commodities ideas
    • Crypto ideas
      • Sells Walls: You know know what these are and how to spot them.
      • New to crypto? Check this top 10 Crypto pairs list PRO and CON before you get in
      • How to consistently make returns with DCA
      • Three simple tools that can help you know the state of the bullrun
      • ATTENTION NEW TO CRYPTO PEOPLE
      • Stable coins
      • Practical Guide to Making and Taking Profits in Crypto
      • 50 Crypto Trading and Investing lessons
      • Red flags of crypto
      • TOP 50 crypto coins
    • Forex ideas
      • New to Forex? Then read this
      • Currencies PRO and CON
    • Stock market ideas
  • Education
  • Books
    • Technical analysis books
    • Stock market and finance
    • Psychology books
  • Extras
    • Page 1
    • THIS IS EXACTLY WHAT IT MEANS when someone says TO DO YOUR OWN RESEARCH (DYOR)
    • A one sentence summary of all the most popular scams so you know what to look out for.
    • Rules for success
    • 5 fundamental truths for trading
    • How to create a trading strategy
    • Components of an efficient strategy
    • Types of trading orders
    • Crypto slangs
    • Correlation of Cryptocurrencies
    • Central Bank Digital Currencies
  • Psychology of trading
    • Skill vs Luck
    • A list of dont's
    • How to know you are good trader
    • ZEN Trading
    • Types of traders
    • First steps
    • Pay yourself first
    • 90-90-90 Rule
    • 10 more things to know
    • Emotional states of a trader
    • Golden rule of trading
    • When can I become a full time trader?
    • How to lose your money with 10 simple steps :)
    • Old Rules...but Very Good Rules
  • Risk management
    • Overview
    • Risk to reward calculation
    • Gains needed to recover from loss
    • Practical example
    • Money management
    • Money management v2
  • Fundamental analysis
    • How to do properly a crypto research
    • APR vs APY
    • Major fundamental news
    • Value investing
    • Interest rates
    • Essential features of ETF's
    • Fundamentals Chart
  • Technical Analysis
    • Types of market days
    • First steps
    • Advanced candlestick Patterns
    • Price channels
    • Key patterns of price action
    • Elliott wave cheat sheet
    • Trading patterns cheat sheet
    • The topics to study to become an expert in technical analysis
    • How to use Volume & Open Interest data as secondary indicators
  • Courses
    • Untitled
Powered by GitBook
On this page

Was this helpful?

  1. Ideas
  2. Forex ideas

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

PreviousNew to Forex? Then read thisNextStock market ideas

Last updated 3 years ago

Was this helpful?