{"id":9760,"date":"2022-10-13T04:42:40","date_gmt":"2022-10-13T04:42:40","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=9760"},"modified":"2022-10-13T04:42:40","modified_gmt":"2022-10-13T04:42:40","slug":"why-trade-currency-crosses","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/13\/why-trade-currency-crosses\/","title":{"rendered":"Why Trade Currency Crosses?"},"content":{"rendered":"\n

Over 80% of the transactions<\/strong> in the forex market involve the U.S. dollar.<\/p>\n\n\n\n

This is because the U.S. dollar is the reserve currency in the world<\/strong>.<\/p>\n\n\n\n

You may be asking yourself, \u201cWhy the U.S. dollar and not the sterling, or euro?\u201d<\/p>\n\n\n\n

\"Strong<\/a><\/figure>\n\n\n\n

Most agricultural and commodities such as oil are priced in U.S. dollars.<\/strong><\/p>\n\n\n\n

If a country needs to purchase oil or other agricultural goods, it first has to change its currency into U.S. dollars before being able to buy the goods.<\/p>\n\n\n\n

This is why many countries keep a reserve of U.S. dollars on hand. They can make purchases much faster with Greenbacks already in their pocket.<\/p>\n\n\n\n

Countries such as\u00a0China,\u00a0Japan, and\u00a0Australia\u00a0are examples of heavy importers of oil, and as a result, they keep huge reserves of U.S. dollars in their central banks.<\/p>\n\n\n\n

In fact, China has over 3 trillion U.S. dollars<\/strong> in its reserve stockpile! Japan and Switzerland hold over 1 trillion<\/strong> each!<\/p>\n\n\n\n

So what does this all have to do with trading currency crosses? Well since most of the world is glued to the U.S. dollar, a majority of trading speculation will be based on one question:<\/p>\n\n\n\n

\u201cIs the U.S. dollar weak or strong today?\u201d<\/strong><\/p>\n\n\n\n

This one question will affect many of the most liquid currency pairs:<\/p>\n\n\n\n

The majors<\/strong>:<\/p>\n\n\n\n