Many people tend to be upset when they see that the dollar is falling in value. Although in fact this event carries a large number of opportunities for earnings. Yes, the dollar is the world’s reserve currency. If it grows, then a lot of traders can earn. Even take the course of hryvnia in 2008 and now.
Before the global financial crisis, the rate was 5 UAH per dollar, and now everything is going to 30. In ten years there was a real opportunity to make a fortune, given this trend of the national currency. Still, sometimes it happens that the dollar falls. After any currency rise, it invariably begins to devalue.
How To Earn On The Fall Of The “most stable currency in the world”?
The most important thing in the Forex market is to anticipate the fall of the US currency, after which to conclude a deal for its sale. Usually in this case currency pairs, with another major currency (e.g. EUR/USD) grow.
Anticipating a fall in the dollar helps to increase commodity prices (e.g. oil). The increase in the public debt of the United States may also serve as signals. The sad (or joyful, depending on which side to look) call is the reduction of interest rates. And not as a single, as too frequent. This suggests that the economy is starting to have serious problems, and to increase the infusion of money into the country, interest rates are reduced to make it more profitable to take out loans.
What To Do?
If you see that the dollar falls or there is one of the symptoms listed above (although greater predictive value has yet their totality), then pay attention to those currencies that are closely linked to the dollar. Usually in this case they increase significantly in price. For example, demand for yen increases if Japan’s economy grows and the US dollar falls in value.
The role of a safe currency, in addition to the euro, can be assumed by the pound sterling. And one of the world’s most stable currencies is the Swiss franc. Very much on her status affects the central bank of that country and its government are doing everything to strengthen the national Swiss currency.
Given that the Swiss franc is one of the six most “wrapped” currencies, this is a very profitable investment. None of the current financial market analysts foresee a rapid fall in this currency.
What More Should Pay Attention
Experts also advise to take into account changes in rates on raw materials, because a very large share of them is quoted in the dollar. If you see an increase in the cost of oil, know that the dollar reduces purchasing power. Major commodity currencies are Canadian and Australian dollars. The former has a positive correlation with oil and the latter has a positive correlation with precious metals.
As we can see, the answer to any creative question (yes, it may seem strange, but trading does have a strong creative component) lies beyond that question. In life it is not rare that we break our heads over some problem, and in fact it turns out that not over it is necessary to break, but somewhere aside. Same with Forex market. If the dollar falls, it is better to pay attention to those assets that are growing at this time.