Loading…
trade person 700x391 - 2 of the Best Currencies to Trade in 2018

2 of the Best Currencies to Trade in 2018

History dictates that there are certain currencies that are traded quite a lot these days.

Since the world is full of different types of currencies, the question is how would people know what currency pairs to trade? Which currencies are the best to trade?

There are many different types of currency pairs. First there are major pairs. These are the currency pairs that are traded the most. They have the most transactions happening between them.

Then there are cross currency pairs. These are currency trades that occur without the United States dollar. From a trader’s perspective, these are naturally behind when it comes to trading. Finally, are exotic pairs. These are currency pairs between countries that have less economic standing.

Now, let’s take a look at the best currency pairs to trade this year.

Euro to Norwegian Krone

First of all, we have the Euro to the Norwegian Krone. This pair is not one that people can identify as major. However, there is some interest generating between these two currencies.

The Krone’s rise and fall is attached to the oil prices right now, as it is one of the biggest exports of Norway. At the same time, Europe has been creating some policies that make the trades between these pairs very viable.

usa dollar - 2 of the Best Currencies to Trade in 2018

US Dollar to Japanese Yen

Next up we have the US Dollar to Japanese Yen. This pair is one that can be considered major as it is one of the best traded currency pairs.

An interesting to note between these currencies is that it spikes whenever risks abound. With rising risks around the globe, the price of these currency pairs rises as well.

This year has been quite interesting with what is happening around the globe. Expect big things to happen with this currency pair.

These are only a couple of the best currency pairs to trade in 2018. We hope that these have helped shine some light on which currencies you should watch out for this year and moving forward.

europe 700x391 - 2 Big Events that Affected the Currency Exchange Rates

2 Big Events that Affected the Currency Exchange Rates

While currencies are constructs created by man, the fact is that real situations and events have the power to affect the currency’s exchange rates at any given moment.

Let’s take a historical look at several big events that affected the currency exchange rates of several countries.

Brexit

brexit - 2 Big Events that Affected the Currency Exchange Rates

The first event we’ll be looking at is how the Brexit affected the Pound. When the Brexit vote went through, most of the population was stunned. Naturally, people though about what this would mean for the economies around the globe.

As many predicted, the British Pound currency value did go down. It actually dropped by 12 percent, with more people believing that more was to come.

However, the Brexit also taught us another thing. The British state is actually in good standings with countries that have strong and stable economies and currencies. As such, this allowed them to stabilize pretty quickly and stop any more bleeding.

This taught us that sometimes, it is about who you know. Traders should look at the relationships of countries and how it would affect the currency rates.

United States’ Sanctions Against Iran

usa - 2 Big Events that Affected the Currency Exchange Rates

Eight years ago, in 2012, the United States set sanctions against Iran and affected their currency. The United States had an ultimatum: you could continue working with Iran’s central bank and sever ties with the United States, or just stop working Iran banks altogether.

The thing about this was the central bank of Iran was the same bank that was taking care of all the oil exports to the world. On the other hand, the United States had one of the strongest currencies and economies.

People were confused as what to do at the moment, but sure enough, there was a decline of 60 percent in just a week’s time for Iran. What did we learn here? Perhaps to plan your actions well when United States is in the picture.

These are only a few historical events that effected currency exchange rates. We hope that these have taught you the importance of looking at current events for what affects currencies.