Home > Education center > Basic knowledge of forex > Forex basic

Basic knowleage of forex

Dollar

Main characteristics of dollar cash

Currency Name: US Dollar (UNITED STATES DOLLAR) Issuer: US Federal Reserve Bank (US FEDERAL RESERVE BANK) Currency Symbol: USD Coin Carry: 1 USD = 100 points (CENTS)

Banknote denomination: seven kinds of 1, 2, 5, 10, 20, 50, 100 yuan. Large denominations that had previously issued $500 and $1,000 denominations are no longer in circulation. The coin has 1 point, 5 points, 10 points, 25 points, 50 points, etc.

Banknote denomination: seven kinds of 1, 2, 5, 10, 20, 50, 100 yuan. Large denominations that had previously issued $500 and $1,000 denominations are no longer in circulation. The coin has 1 point, 5 points, 10 points, 25 points, 50 points, etc.

The dollar is also known as the "green back"

In 1863, the Ministry of Finance was authorized to issue banknotes, and the back was printed in green. It was called "Green Back" and it has been in use ever since.

(1) The overall performance of the US economy - the strength of the currency is the manifestation of national strength a, Trade Deficit c, Profit Earning d, Growth of Productivity

(2) US interest rate movements Because the US has a fairly strong and independent central bank, monetary decisions have a critical impact on the overall performance of the economy, so each regular meeting of the Fed will have more or more Or less impact. Since interest rates directly affect the fixed income of foreign currency deposits, the strength of the US dollar index is greatly affected by interest rate adjustment.

(3) Stock market performance If a country's stock market performs well, it will attract international capital inflows, which in turn will drive the exchange rate up.

(4) Relative strength of other major currencies – after the launch of the euro, the German mark, the French franc, the Italian lira, the Dutch coin, and the Belgian franc are five-in-one. The euro has become the most important weight currency, accounting for the US dollar. The index is as high as 57.6%, and the impact is also concentrated on the trend of the euro, the yen, and the pound. Therefore, the ECB's monetary policy trends and the economic performance of the Eurozone are all indispensable factors in observing the strength of the US dollar index.

GBP

Pound currency characteristics

The main features of the British pound can be summarized as follows: Currency name: Pound (POUND, STERLING) Issuer: Bank of England (BANK OF ENGLAND) Currency symbol:: GBP coin transfer: 1 pound = 100 pence (PENCE) banknote Denomination: 5, 10, 20, 50 pounds

EUR

Euro currency characteristics

The main characteristics of Euro cash can be summarized as follows: Currency Name: Euro (EURO) Issuer: EUROPEAN CENTRAL BANK Currency Symbol: EUR Coin Carry: 1 Euro = 100 Euro cents (CENTS) Banknote Denomination : 5, 10, 20, 50, 100, 200, 500 Euros. The coin has a total of 8 denominations of 1, 2, 5, 10, 20, 50 Euro cents and 1 Euro and 2 Euro. The name Euro (Euro) was decided by the participating countries when the European Parliament was held in Madrid, Spain in December 1995. The official abbreviation for the euro is EUR.

Factors affecting the euro

The Eurozone: Eurozone. It consists of 12 countries, Germany, France, Italy, Spain, the Netherlands, Belgium, Austria, Finland, Portugal, Ireland, Luxembourg and Greece, all using the euro as the currency of circulation.

European Central Bank (ECB): European Central Bank. Control the monetary policy of the euro zone. The decision-making body is a central bank committee composed of the executive committee and the central bank president of 12 member states. The Executive Committee includes the ECB President, Vice President and 4 members.

Swiss Franc

Swiss Franc currency characteristics

The main features of the cash can be summarized as follows: Currency name: Swiss Franc (SWISS FRANC) Issuer: BANQUE NATIONALE SUISSE Currency symbol: CHF Coin carry: 1 Swiss franc = 100 diced (CENTIMES ) denominations of banknotes: banknote denominations 10,20,50,100,500,1000 francs, coins have 1,2,5,10,20,50 1,2,5 franc and grading.

Factors affecting the Swiss franc

Swiss National Bank (SNB): Swiss National Bank. The Swiss National Bank has great independence in formulating monetary and exchange rate policies. Unlike the central banks of most other countries, the SNB does not use specific money market rates to guide the currency. Until the fall of 1999, the central bank had used foreign exchange swaps and repurchase agreements as the main tools affecting money supply and interest rates.

JPY

Yen currency introduction

The main features of the Japanese banknotes can be summarized as follows: Currency name: JPY (JAPANESE YEN) Issuer: Bank of Japan (NIPPON GINKO) Currency symbol: JPY banknote denomination: 500, 1000, 5000, 10,000 yuan, The coin has 1, 5, 10, 50, 100 yuan and so on.

Yen currency characteristics

Japan has adopted the gold standard since 1886 and issued Japanese banknotes that can be exchanged for gold coins. During the First World War, Japan abolished the gold standard. In 1964, the yen became an international currency. After the collapse of the Braden forest system, the yen was in 1971. The floating exchange rate was implemented in the year.

Australian dollar

Australian dollar currency characteristics

The main characteristics of Australian cash can be summarized as follows: Currency Name: AUSTRALIAN DOLLAR Currency Symbol: AUD Coin Carry: 1 AUD = 100 points (CENTS) Banknote Denomination: 5, 10, 20, 50, 100 yuan. Issuer: RESERVE BANK OF AUSTRALIA

Factors affecting the Australian dollar

Australian dollar, referred to as the Australian dollar (Aussie): The Australian dollar is also known as the "commodity currency", and its exchange rate is closely related to the prices of commodities such as gold, copper, nickel, coal and wool, which account for Australia's total exports. Nearly 2/3. Therefore, the trend of the Australian dollar is usually strongly influenced by the price trends of these commodities. The Australian dollar is often supported in an inflationary economic environment, when the price of commodities is rising. For example, when the price of gold rose in 2002, the Australian dollar exchange rate also rose. In the summer of 2002, when the metal price was adjusted back, the Australian dollar also reversed. Both of them rose again in the fourth quarter of 2004.

Canadian dollar

Canadian dollar currency characteristics

The main features of the cash can be summarized as follows: Currency Name: CANADA DOLLAR Currency Symbol: CAD Coin Carry: 1 yuan = 100 points (CENTS) Banknote Denomination: 2, 5, 10, 20, 50 , 100, 1000 yuan issuer: Bank of Canada (BANK OF CANADA)

Factors affecting the Canadian dollar

Canadian dollar, referred to as Canadian dollar (English abbreviation "Loonie", loon is a waterfowl, the Canadian dollar coin has a pattern of loon). The unique position of the Canadian dollar is that the bilateral trade volume between Canada and the United States is higher than the bilateral trade volume between any other two countries. 80% of Canadian exports go to the United States, so the Canadian dollar exchange rate is closely related to the strength of the US economy. The Canadian dollar is also considered a “commodity currency” because about half of Canadian exports come from exports of goods. Bank of Canada: Central Bank of Canada

Singapore dollar

Singapore dollar currency characteristics

Singapore withdrew from the Malaysian Federation in 1965 and declared independence on December 22. Singapore began issuing its own banknote "Singapore Dollar" on June 12, 1967. The main features of the Singapore dollar banknote can be summarized as follows: Currency name: SINGAPORE DOLLAR currency symbol:: SGD coinage carry: 1 yuan = 100 points (CENTS) banknote denomination: 1, 2, 5, 10 50, 100, 500, 1000, 10,000 yuan. Issuer: BOARD OF COMMISSIONERS OF CURRENCY

Hong Kong dollar

Hong Kong currency currency characteristics

The main features of Hong Kong dollar cash can be summarized as follows: Currency symbol: HKD Coin carry: 1 yuan = 100 points (CENTS) Currency name: Hong Kong dollar (HONG KONG DOLLAR) banknote denomination: banknote denomination is 10, 20, 50 , 100, 500, 1000 yuan, coins, 1, 2, 5, 10 yuan and 1 milli, 2 milli, 5 milli, and so on. There are three Hong Kong dollar banknote issuing banks. HONGKONG AND SHANGHAI BANKING CORPRATION, STANDARD CHARTERED BANK, BANK OF CHINA.

Risk warning:All foreign exchange, precious metals are accompanied with great risk, therefore is not suitable for all investors. Please be sure to fully understand the risks at your own can bear within the scope of the investment. More risk for details, please refer to the risk of WSG statement and deposit policy.