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Dollar gains, stocks teeter as US data suggests rates to stay higher

The dollar rose and a gauge of global equities slid on Thursday after data once again highlighted persistent U.S. labor market strength, suggesting the...
HomeFOREXWhat are safe havens and risky currencies

What are safe havens and risky currencies

Havens include,, and.

Here are some reasons why they are considered safe haven currencies: One.

The U.S. dollar is the largest player in the world bond market.

Bonds are seen as safe assets.

When there is fear and panic in the world, investors move their money into safe assets.

The U.S. bond market is the only bond market with enough liquidity to soak up their money, and investors in the U.S. bond market can only use dollars to buy.

Since all commodities and precious metals are priced in dollars, the dollar became the global and medium of exchange.

Japan has the world’s best current account record.

For example, within the scope of the company, the profits made by the company get better and better every year.

Japan does not owe much to the world so it is a self-sufficient economy.

The Swiss franc is still seen as a gold-backed currency, but this is no longer the case.

Feelings play a bigger role, so the Swiss franc is still considered a safe haven currency.

The currencies at risk are NZD and.

Here are some reasons why they are considered risky currencies: One.

Commodity-linked currencies Australia exports gold, coal and iron ore.

Canada exports more than 90 percent of its oil.

As the world continues to grow, demand for goods will rise.

As a result, the Australian and Canadian economies will improve further.

When investors feel positive and buoyant about the economy, they expect growth.

This naturally boosts demand for goods.

The high AUD and NZD have the highest interest rates among the seven major currencies (USD, CHF, AUD, NZD, and CAD).

This means that if you deposit in Australian or New Zealand dollars, you will get a higher return than if you deposit in other major currencies.

When investors feel the economy is humming, they will invest in higher-yielding currencies.

The dollar neared the 98 mark, the euro hit a near 22-month low, focus on the non-farm report.

Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.