Industry

How Did the Dollar Become the "Dominant Currency"?

The U.S. dollar's role as the core currency in the forex market stems from its dominance as the global reserve currency. Since World War II, the dollar gradually became the world's reserve currency through its link to gold. Although the U.S. left the gold standard in 1971, the dollar has remained the primary currency in global foreign exchange reserves, playing a significant role in international transactions and investments. According to data from the International Monetary Fund (IMF), the dollar currently makes up more than 60% of global foreign exchange reserves and serves as the standard currency for global settlement, particularly in commodity transactions such as oil and gold. Moreover, the size of the U.S. economy and the depth and liquidity of its financial markets have helped maintain the dollar's dominant position in the global forex market. The global influence of the U.S. economy and its innovation capabilities have made the dollar irreplaceable in global trade. Additionally, U.S. financial markets, including its bond, stock, and foreign exchange markets, attract global investors due to their high liquidity and scale, further driving the widespread use of the dollar. The Federal Reserve's monetary policy also has a significant impact on global markets, especially in areas like interest rates, capital flows, and financial market stability. Therefore, the dollar's central role in the global payment system makes it the foundation of the forex market.

2025-01-10 15:23

Liked

Reply

Industry

How a forex traders spends his weekend 😅😅

#JanuaryTradingStrategy #YourFavorite EATool #ProfitingFrom TradingSignals The weekend - the two days where traders pretend they're not constantly checking their phones. Here's how the average trader spends their glorious respite from the markets: Saturday Morning: Wake up at 6 AM because your body clock thinks every day is a trading day. Spend the first hour convincing yourself that you're on vacation from the Forex world. Check your phone under the pillow just to make sure the markets haven't decided to open on a whim😅. Saturday Brunch: Instead of enjoying pancakes, you're calculating how many pips you could've made if you'd traded that last candle. You stare at your coffee mug, imagining it's a chart, and you resist the urge to day trade your syrup. Afternoon: "Relaxation" time. This involves lying on the couch, but with one eye on your trading app. You think about going for a walk but decide to "walk" through your trading strategies instead. Spoiler😂: you end up staying put. Evening: BBQ with friends. You're grilling burgers, but in your head, you're grilling the market for that one bad trade🥹. Every flame that leaps from the grill reminds you of a volatile market, making you twitch every time the meat sizzles. Saturday Night: You attempt to watch a movie, but you end up analyzing the plot like it's a market trend. Is this rom-com bullish😅 or love? Or is there a bearish twist coming? You fall asleep dreaming of candlesticks. Sunday Morning: You swear off trading for the day and decide to read a book. But not just any book; it's "The Art of War" by Sun Tzu, for "inspiration". Halfway through, you're drafting new trading rules. Sunday Afternoon: The dread kicks in as the markets start to stir in Asia. You promise your significant other you'll spend quality time together, but "quality time" becomes you explaining why Bitcoin is or isn't the future😂. Sunday Evening: The Sunday Scaries hit, but for traders, it's the "Sunday Market Fears". You start prepping for the week, setting up alerts, and mentally preparing for whatever chaos Monday might bring. End of Weekend: You're back at your screen, telling yourself, "This week, I'll make it big!🤑🤑" while your loved ones celebrate the return of your attention to the real world... until next weekend, when the cycle begins anew. Happy Weekend, Traders! May your downtime be as profitable as your uptimes, or at least less stressful! 📈🍔📚 Enjoy your laugh, and may your trades be as successful as your weekend escapades!

2025-01-10 15:05 Hong Kong

Liked

Reply

IndustryHow Far Will the Bond Market Decline?

The global bond market has experienced a large-scale sell-off. Since mid-September, U.S. Treasury yields have been on an almost continuous rise, increasing by over 100 basis points. This trend mirrors the stock market crashes of 2022 and 2023, when U.S. Treasury yields briefly approached 5%. However, despite the continued rise in bond yields, the stock market has not seen the expected major correction. This may suggest that if yields keep climbing, the stock market could face further downside risk. Similar to the U.S. bond market, the European bond market is also in decline. The yield on the U.K. 10-year Treasury bond has hit a new high since 2008, while the 30-year bond yield has reached its highest level since 1998. Although the U.K. Treasury has stated that the bond market is functioning normally with strong demand, the market remains under pressure. Meanwhile, uncertainty in the European economy is rising, inflationary pressures are gradually increasing, and the economic growth outlook remains bleak, making the situation in the European bond market even more complicated. Weak economic data and concerns about fiscal deficits have left investors uncertain about the future market.

Neuberger

2025-01-10 15:24

IndustryForecast for the Future of the Bond Market

Looking ahead, the bond market may continue to face pressure. According to a Goldman Sachs report, the current rise in U.S. Treasury yields reflects market concerns about U.S. fiscal and inflation risks. If economic data continues to underperform, the bond market could face further selling pressure. At the same time, the negative correlation between the U.S. stock market and the bond market has increased, which could mean more downside risk for the stock market in the future. Given the uncertainty in economic growth, investors should remain vigilant about future bond market trends. With high market uncertainty, continued declines in the bond market, and an unclear stock market outlook, investors should exercise caution, particularly considering the interrelationship between the bond and stock markets. Investment decisions need to be made more carefully. Investors should monitor the trajectory of the U.S. and global economies, assess potential risks with caution, and adjust asset allocations to prepare for potential market volatility in the future.

Neuberger

2025-01-10 15:24

IndustryHow Did the Dollar Become the "Dominant Currency"?

The U.S. dollar's role as the core currency in the forex market stems from its dominance as the global reserve currency. Since World War II, the dollar gradually became the world's reserve currency through its link to gold. Although the U.S. left the gold standard in 1971, the dollar has remained the primary currency in global foreign exchange reserves, playing a significant role in international transactions and investments. According to data from the International Monetary Fund (IMF), the dollar currently makes up more than 60% of global foreign exchange reserves and serves as the standard currency for global settlement, particularly in commodity transactions such as oil and gold. Moreover, the size of the U.S. economy and the depth and liquidity of its financial markets have helped maintain the dollar's dominant position in the global forex market. The global influence of the U.S. economy and its innovation capabilities have made the dollar irreplaceable in global trade. Additionally, U.S. financial markets, including its bond, stock, and foreign exchange markets, attract global investors due to their high liquidity and scale, further driving the widespread use of the dollar. The Federal Reserve's monetary policy also has a significant impact on global markets, especially in areas like interest rates, capital flows, and financial market stability. Therefore, the dollar's central role in the global payment system makes it the foundation of the forex market.

Neuberger

2025-01-10 15:23

IndustryDo you enjoy trading forex ? : Here's my take 🙌

#JanuaryTradingStrategy #YourFavoriteEATool #ProfitingFromTradingSignals Forex trading, the only place where you can watch your money travel the world faster than you can say "exchange rate😂." I mean, who needs a vacation when your dollars are already exploring exotic places like the Tokyo Stock Exchange or the London Forex Market😅? Every morning, I log in to see if my euros have made it back from their wild night in Frankfurt or if my pounds are having a tea party in Sydney. It's like a global treasure hunt, but instead of finding treasures, you find... well, sometimes you find less than you started with🥹. But hey, it's not all about the losses, right? Sometimes you wake up and see that your Yen has magically multiplied overnight, and you think you've cracked the code to the universe😎. Until you remember it's just the market playing its favorite game of "Guess Who's Broke Now?" And the best part? The suspense! Will my account gain weight or will it go on a crash diet? It's like watching a soap opera where the main character is your bank balance – full of drama, plot twists, and cliffhangers. So, do I enjoy Forex? About as much as I enjoy watching paint dry, but with more adrenaline and less certainty about the outcome. Happy weekend, folks! May your weekend be more predictable than your Forex trades! 🌍📉🍹 Hope that brings a chuckle to the trading community

Hub Spot

2025-01-10 15:12

IndustryHow a forex traders spends his weekend 😅😅

#JanuaryTradingStrategy #YourFavorite EATool #ProfitingFrom TradingSignals The weekend - the two days where traders pretend they're not constantly checking their phones. Here's how the average trader spends their glorious respite from the markets: Saturday Morning: Wake up at 6 AM because your body clock thinks every day is a trading day. Spend the first hour convincing yourself that you're on vacation from the Forex world. Check your phone under the pillow just to make sure the markets haven't decided to open on a whim😅. Saturday Brunch: Instead of enjoying pancakes, you're calculating how many pips you could've made if you'd traded that last candle. You stare at your coffee mug, imagining it's a chart, and you resist the urge to day trade your syrup. Afternoon: "Relaxation" time. This involves lying on the couch, but with one eye on your trading app. You think about going for a walk but decide to "walk" through your trading strategies instead. Spoiler😂: you end up staying put. Evening: BBQ with friends. You're grilling burgers, but in your head, you're grilling the market for that one bad trade🥹. Every flame that leaps from the grill reminds you of a volatile market, making you twitch every time the meat sizzles. Saturday Night: You attempt to watch a movie, but you end up analyzing the plot like it's a market trend. Is this rom-com bullish😅 or love? Or is there a bearish twist coming? You fall asleep dreaming of candlesticks. Sunday Morning: You swear off trading for the day and decide to read a book. But not just any book; it's "The Art of War" by Sun Tzu, for "inspiration". Halfway through, you're drafting new trading rules. Sunday Afternoon: The dread kicks in as the markets start to stir in Asia. You promise your significant other you'll spend quality time together, but "quality time" becomes you explaining why Bitcoin is or isn't the future😂. Sunday Evening: The Sunday Scaries hit, but for traders, it's the "Sunday Market Fears". You start prepping for the week, setting up alerts, and mentally preparing for whatever chaos Monday might bring. End of Weekend: You're back at your screen, telling yourself, "This week, I'll make it big!🤑🤑" while your loved ones celebrate the return of your attention to the real world... until next weekend, when the cycle begins anew. Happy Weekend, Traders! May your downtime be as profitable as your uptimes, or at least less stressful! 📈🍔📚 Enjoy your laugh, and may your trades be as successful as your weekend escapades!

Lepy Joe

2025-01-10 15:05

IndustryImpact of a Strong Dollar on the Yen

If the US dollar remains strong, the yen could depreciate further, placing greater pressure on Japan's economy. A strong dollar increases the cost of imported goods, exacerbating inflationary pressures within Japan. While yen depreciation might benefit export companies, it raises living costs for domestic consumers, creating a "double-edged sword" effect. Additionally, the weakening yen could present further challenges for the Bank of Japan's monetary policy. In the context of US interest rate hikes, if Japan maintains its loose monetary policy, the yen's depreciation may accelerate. For investors, the future of the yen remains uncertain, especially in a scenario where the US dollar continues to strengthen, which could lead to greater depreciation of the yen. The risk of government intervention is also rising, so investors should exercise caution, closely monitor US economic data, and be aware of Japan's policy actions. Given the significant market volatility, strict risk management and flexible strategies are crucial.

Neuberger

2025-01-10 11:43

Join in
Forum category

Platform

Exhibition

Agent

Recruitment

EA

Industry

Market

Index

Hot content

Industry

Event-A comment a day,Keep rewards worthy up to$27

Industry

Nigeria Event Giveaway-Win₦5000 Mobilephone Credit

Industry

Nigeria Event Giveaway-Win ₦2500 MobilePhoneCredit

Industry

South Africa Event-Come&Win 240ZAR Phone Credit

Industry

Nigeria Event-Discuss Forex&Win2500NGN PhoneCredit

Industry

[Nigeria Event]Discuss&win 2500 Naira Phone Credit

Release