Foreign Exchange: major popular currency pairs such as US dollar, Euro, British pound, Japanese yen, Australian dollar, Swiss franc (up to 43 currency pairs)
United States dollar (USD)
Having a leading position in the foreign exchange market, most of the currency portfolios use the US dollar as the base currency or relative currency. The U.S. dollar is the main foreign exchange deposit currency of central banks, so the U.S.'s global political and economic status is the most influential factor in U.S. dollar prices. Since the domestic foreign exchange market, stock market, bond market and other markets are closely related, and the flow of funds in each market is very high, the main domestic economic data and the exchange rate of the US dollar also have a direct impact.
The euro is the currency in circulation in 17 countries of the European Union (EU), the second largest currency in circulation in the world, and the second major reserve currency of central banks. The European Union now has 27 member states and is the world’s largest economic entity. Its members come from multiple independent sovereign countries. The differences in political culture and economic development among countries have led to contradictions within the European Union. The European Central Bank strictly controls inflation and the European Union promotes the economy. The policy effect of the reform has not been significant, and it has become a factor affecting the development of the euro. The euro is the main alternative investment currency for the US dollar, so when the US dollar is weak, the euro should benefit most directly.
Japanese yen (JPY)
Japan is the world’s largest investor and creditor, and the country with the largest reserves in the world. The Japanese economic environment affects the flow of Japanese yen funds and at the same time affects the global economy; if the market looks forward to a rebound in the Japanese economy and the yen exchange rate rises, it means that funds will flow back to the Japanese market, which will affect the long-term holding of Australian, Canadian and New Zealand dollar bonds by Japanese investors , And various influential investment products. As the Japanese economy has entered a recession in the past two decades, coupled with the lack of natural resources, the economy has been dependent on exports for a long time, creating uncertainties for the yen exchange rate. Since the interest rate on the yen is close to zero, when the dollar is strong, buying orders for the dollar against the yen will emerge to earn interest rates, which is very popular among speculators.
Pound sterling (GBP)
The United Kingdom is a global oil and natural gas producer, one of the seven largest industrial countries in the West, and the world's largest foreign exchange, insurance finance and trade center. The trend of the pound is directly affected by the flow of funds. When investors reduce their holdings of British stocks and properties, the pound will be under pressure. With the introduction of the euro, the share of investors holding the pound has fallen.
Canadian Dollar (CAD)
Canada is one of the seven major industrial countries, rich in natural resources, social, political and economic environment is quite stable, the country contains a lot of minerals and energy, agriculture is developed, agricultural products are rich, export and foreign trade are the main factors affecting the Canadian dollar. And when the price of oil rises, money will flow into Canada, which will support the Canadian dollar.
Australian Dollar (AUD)
Australia is rich in natural resources and is an important exporter of minerals and agricultural products. Rising commodity prices have caused capital to flow into Australia, which is beneficial to the exchange rate of the Australian dollar. In recent years, Asia has become Australia's main export area, so the economic situation in Asia directly affects the trend of the Australian dollar.
New Zealand Dollar (NZD)
The economic foundations of New Zealand and Australia are similar. The New Zealand dollar is also a commodity currency, but New Zealand's exports focus on agriculture and timber, which is more affected by the demand for raw materials in Asia.
Swiss Franc (CHF)
Due to the close ties between Switzerland and the European economy, the exchange rate between the Swiss franc and the euro shows a great positive correlation. That is, the rise of the euro will also drive the rise of the Swiss franc. The relationship between the two is the closest of all cargo shelters. As Switzerland pursues a policy of neutrality and non-alignment, Switzerland is considered to be the safest place in the world. It is known as the traditional safe haven. Coupled with the protection policies adopted by the Swiss government on finance and foreign exchange, a large amount of foreign exchange has entered Switzerland. The Swiss franc has also become a stable and popular international settlement and foreign exchange transaction shield. The Swiss franc has been the most stable currency in the last century and has been regarded as a safe haven currency for a long time. Therefore, it is almost always inflation-free in Switzerland, and the currency has 40% gold reserves.