Currency quotes at . Major and commodity currency pairs

The world currency market has developed its own specifics. Currency pairs are divided into a number of blocks according to their degree of influence and dependence on certain factors.

Major currency pairs at Forex

The main block includes currency pairs with the U.S. dollar. The exceptional role of these three currencies in world markets lies in several factors:

The first is. The special role of the U.S. dollarThe global financial system is based on the U.S. national currency, as defined by the Bretton Woods and later the Jamaica Accords. According to these agreements, the global financial system is based on the U.S. national currency. The dollar has three important functions: the USD is a universal means of payment in international trade, and it serves as an underlying asset for the creation of reserves for central banks other countries, along with gold. On top of everything else the U.S. dollar is the benchmark in the quotations of national currencies of other countries: all currency pairs quoted against the dollar are called major currencies, all other currencies are quoted through the dollar in one way or another - and are called cross-pairs.

The euro and the Japanese yen have the status of regional currencies. Single European currency has a particular influence on the European continent. The Japanese yen has a huge influence in the Asian region. The status of the euro and the yen has recently increased so much that currency reserves of all countries in the world are not only based on the dollar, but also include the yen and the euro in one or another combination. In addition, the yen, along with the dollar and gold, is perceived globally as sanctuary currency.

Commodity currencies and their role in the

At foreign exchange market There is another peculiar block of currencies, which includes the currencies of countries closely associated with the export of raw materials (oil, metals, gold). Such currencies are called commodity currencies. Despite the fact that there are dozens of countries in the world that depend on the export of raw materials, the following currencies are important in the market: the New Zealand, Australian and Canadian dollars, and respectively the currency pairs USD/CAD, AUD/ USD, NZD/USD and their cross-courses.

Raw materials constitute such a significant part of the exports of these countries that the rise in prices of commodities exported by these countries correlates with the exchange rate of the currencies of these countries.

The most sought-after raw materials in the world today are oil. Oil is produced by many countries, primarily the oil cartel countries of the Middle East, South America and North Africa, but there are also major oil supplier countries, including Canada, whose currency is freely traded on the . In terms of oil reserves and production of "black gold" Canada is second only to Saudi Arabia. In addition, Canada is the largest supplier of oil to the United States, the main consumer of this raw material in the world. Thus, the growth of oil leads to the growth of the Canadian dollar and vice versa. Australia and New Zealand have very significant reserves of energy and minerals. In terms of reserves iron ore Australia is the second largest producer and exporter of coal, aluminum, copper, titanium ore, uranium and diamonds. New Zealand's economy is based on agriculture, tourism, food and manufacturing industries.

However, despite the broad range of export currency products These two countries are associated in the world primarily with gold. Gold is one of the most sought-after commodities because in the financial world gold is seen as a savings instrument. Reserves of central banks of all countries is made up of currency and gold reserves. Gold exports Australia and New Zealand account for a large part of the total exports of these countries. Therefore, the price of gold on world markets is highly correlated with the exchange rate of these currencies.

Properties of commodity currencies correlate with oil (Canadian dollar) and gold (Australian dollar) provide a valuable analytical tool for trading. Although short-term movements in commodity prices usually do not have an immediate effect on commodity currencies. Commodity price analysis to find a link to currencies is more suitable for long-term traders, forecasting and investing.

Another important tool for market analysis can be provided by the main block currencies. The fact that the dollar (to a greater extent), and the yen (to a lesser extent) are considered by the market as safe haven currencies, the demand for these currencies increases in times of crisis in the world.

The world economy is characterized by development in waves - a period of decline and a period of growth. This is reflected in the exchange rates at the world currency exchange, the downturn in the world economy leads to an increase in demand for refugee currencies and a decline in demand for commodity currencies. And vice versa. Understanding these processes can be another important tool for analysis foreign exchange market .