# 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