The world currency US dollars

The US dollar has a special role in the global financial world. It is considered the world currency because most international transactions are carried out using the US dollar, and it is also the main reserve currency. The gold price is set in US dollars and the Forex nz‘ trade in oil is also carried out in the US currency. These factors make the US dollar the most important currency in the world, which is why the US dollar is also involved in much of foreign exchange trading.


The fact that the Forex Brokers pair consisting of the euro and the US dollar is the most traded pair is also due to the strength of the economies that represent the two currencies. While the member states of the EU are responsible for 16.7% (2016) of the global gross domestic product, the USA accounts for 15.5%. China achieved a higher value at 17.8%, since the Chinese yuan, also known as the renminbi, is pegged to the US dollar and not completely freely tradable, and plays only a minor role in the forex market.


The Japanese yen is considered to be the most important Asian currency. Due to the economic strength of Japan – fourth among the countries with the largest share of global GDP, ahead of Germany – and the strong trade relations with the USA and Europe, but also other Asian countries, numerous companies have to exchange their local currencies for yen and vice versa. Because of this, the USD / JPY pair is one of the most widely traded currency pairs in the forex market.


The British pound plays an important role in forex in Australia financial markets. When Great Britain was still the world’s leading economic power, the British pound was used as a reserve currency. But even today, Great Britain is one of the economically strongest countries in the world and the currency continues to have a high priority. The share of the financial sector in the UK’s GDP is over 10%, so financial markets play a big role in the UK economy. This is another reason why the GPD / USD currency pair is actively trading.


The most important secondary Forex trading Canada are the so-called “commodity currencies”. This includes Australia due to its rich natural resources of gold, coal, aluminum and iron. In addition, there is a large agricultural and service sector. Due to its isolated geographic location and small population, Australia is dependent on importing numerous goods. Global trading results in high trading volume of the USD / AUD pair in the Trading Online in Germany market as well.


Canada can also come up with abundant raw material deposits (natural gas, oil, wood), which is why the Canadian dollar is also one of the “commodity currencies”. Due to its geographical location, the Canadians’ most important trading partner is of course the USA. With most of Canada’s exports going to its immediate neighbor, Forex UK in the US are also having a major impact on Canada. Low economic growth in the US, for example, can negatively affect Canada’s export figures.


The Swiss franc is also very important on the capital markets. The Swiss franc is widely regarded as a “safe haven” because Switzerland is known for its political neutrality and its stable and discreet banking system. Many investors hold parts of their portfolios in Swiss francs and it is not uncommon for investors to convert their capital into Swiss francs during times of international crisis.