All Currencies are Not Equal
Traders tend to focus on the here and now of price movements, you see a series of currency pairs and pick them up according to what seems more active or interesting technical sales. It may be good to diversify and spread the risks in the market, does not fall into the trap of thinking that we all as well as the last. There is a deeper meaning behind the major global currencies are not widely discussed within the Retail Forex trading community. Take a few minutes to think can really help your trading and improving returns, because all currencies are not created equal.
The usd is the key
The dollar is by far the most important currency in the world, mainly because the United States of America is the only military superpower in the world and an important driver of the global economy. For these reasons, the dollar reserves of the world economy. If people any where in the world has lost confidence in their own currency, they turn to the dollar. Currency of most generally measured countries, first to the U.S. dollar. We stock exchange is the most important award in the world and investment in information technology, you must have the US dollars. If you can filter your stock in it, receive $. Oil, gold and other commodities are prices in US dollar basis. There's more of us floating around the world, more than any other currency and foreign exchange dealers key anywhere in the world and is measured at least in the long term.
Of course there are other currencies is large and important, such as the euro and the Japanese yen. However, it is not even close to dislodge the dollar from its headquarters.
US trends dollar more as expected of any other currency
When is the dynamic test of models in a range of currencies, dollar pairs who seem to have a more reliable, while smaller volatile, unpredictable currencies, much more.
Models usually means the proposal trading momentum 'when, buy and sell when you're going down." This method does not work well with the smaller currencies, but could prove to be the least cost-effective strategy for ten years when it is applied to pairs of the dollar.
For example, suppose that you bought the pair each week when higher 6 months ago and sell a currency pair when the price was less than 6 months, he graduated at the end of each week. Raw results, with the exception of spreads and interest charges, from 2002 to date, the pair:
The USD pairs
pairs 111914 dollar
The result is the average per pair positive dividend exceeds the dollar by 20%.
As EUR/USD, GBP/USD, the GBP/USD performance in particular, we will test the performance crosses the euro and the pound sterling and the Australian another:
Euro 111914 pairs
USD Pairs
The average result per USD pair was in excess of a positive return of 20%.
As EUR/USD, GBP/USD and AUD/USD performed especially well, let’s test how the other EUR, GBP and AUD crosses performed:
Results for other look-back periods such as 3 months or 12 months are not shown here, but produce similar patterns.
No result is shown for other periods return look like 3 months or 12 months here, but produce similar profiles.
This suggests that most traders should have an easier time for deliberation before sticking to the dollar, meaning couples majors 4 and perhaps also the GBP/USD and NZD/USD and trade in the same direction as the long-term trends. Another advantage of those couples that spreads on committees tend to be low.