US Dollar

The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purely fiat currency, i.e. not backed by a physical commodity. The former gold standard aligned to the US dollar, made both gold and silver the legal-tender coinage of the USA, with the guarantee that 1 USD could be converted to one and a half grams of pure 24 carat gold. However, the gold link was eventually abolished by President Richard Nixon in 1971. Since the gold standard was cut, the US dollar has become the world’s number one reserve currency.This means foreign nations possess large amounts of their cash reserves in USD, accounting for approximately 65% of the world’s foreign exchange reserves.How to Trade the US Dollar?The US Dollar is traded in a variety of ways, most notably on the foreign exchange (forex) market versus other currencies; traded as pairs. Any retail broker offers exposure to the USD in many exchange pairs, given its popularity and liquidity. The USD is involved in the majority of the most traded forex pairs, such as the EUR/USD, the USD/JPY, the GBP/USD and the USD/CHF, known as the “four majors”, and the “commodity pairs”, i.e. AUD/USD, USD/CAD and the NZD/USD.
The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purely fiat currency, i.e. not backed by a physical commodity. The former gold standard aligned to the US dollar, made both gold and silver the legal-tender coinage of the USA, with the guarantee that 1 USD could be converted to one and a half grams of pure 24 carat gold. However, the gold link was eventually abolished by President Richard Nixon in 1971. Since the gold standard was cut, the US dollar has become the world’s number one reserve currency.This means foreign nations possess large amounts of their cash reserves in USD, accounting for approximately 65% of the world’s foreign exchange reserves.How to Trade the US Dollar?The US Dollar is traded in a variety of ways, most notably on the foreign exchange (forex) market versus other currencies; traded as pairs. Any retail broker offers exposure to the USD in many exchange pairs, given its popularity and liquidity. The USD is involved in the majority of the most traded forex pairs, such as the EUR/USD, the USD/JPY, the GBP/USD and the USD/CHF, known as the “four majors”, and the “commodity pairs”, i.e. AUD/USD, USD/CAD and the NZD/USD.

The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally.

It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century.

The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage.

Once backed by gold (in the 1900’s), the USD is now a purely fiat currency, i.e. not backed by a physical commodity.

The former gold standard aligned to the US dollar, made both gold and silver the legal-tender coinage of the USA, with the guarantee that 1 USD could be converted to one and a half grams of pure 24 carat gold.

However, the gold link was eventually abolished by President Richard Nixon in 1971. Since the gold standard was cut, the US dollar has become the world’s number one reserve currency.

This means foreign nations possess large amounts of their cash reserves in USD, accounting for approximately 65% of the world’s foreign exchange reserves.

How to Trade the US Dollar?

The US Dollar is traded in a variety of ways, most notably on the foreign exchange (forex) market versus other currencies; traded as pairs.

Any retail broker offers exposure to the USD in many exchange pairs, given its popularity and liquidity.

The USD is involved in the majority of the most traded forex pairs, such as the EUR/USD, the USD/JPY, the GBP/USD and the USD/CHF, known as the “four majors”, and the “commodity pairs”, i.e. AUD/USD, USD/CAD and the NZD/USD.

Technical Analysis

The markets are in motion. Stocks are lower. Yields are higher. The USD is higher.

foREX

The markets are in motion. Stocks are lower. Yields are higher. The USD is higher.

  • A look at some of the major currencies as the USD continues the trend higher
Greg Michalowski
Greg Michalowski
Friday, 23/09/2022 | 13:19 GMT-0
23/09/2022 | 13:19 GMT-0
Central Banks

Powell Q&A: My main message has not changed at all since Jackson Hole

Powell Q&A: My main message has not changed at all since Jackson Hole

  • Comments from the Federal Reserve Chairman in response to questions on September 21, 2022
Adam Button
Adam Button
Wednesday, 21/09/2022 | 18:39 GMT-0
21/09/2022 | 18:39 GMT-0
Central Banks

Powell opening statement: The economy does not work for anyone without price stability

Powell opening statement: The economy does not work for anyone without price stability

  • Comments in the opening statement from Federal Reserve Chairman Jerome Powell
Adam Button
Adam Button
Wednesday, 21/09/2022 | 18:31 GMT-0
21/09/2022 | 18:31 GMT-0
News

US MBA mortgage applications w.e. 16 September +3.8% vs -1.2% prior

US MBA mortgage applications w.e. 16 September +3.8% vs -1.2% prior

  • Latest data from the Mortgage Bankers Association for the week ending 16 September 2022
Justin Low
Justin Low
Wednesday, 21/09/2022 | 11:00 GMT-0
21/09/2022 | 11:00 GMT-0
News

US MBA mortgage applications w.e. 9 September -1.2% vs -0.8% prior

US MBA mortgage applications w.e. 9 September -1.2% vs -0.8% prior

  • Latest data from the Mortgage Bankers Association for the week ending 9 September 2022
Justin Low
Justin Low
Wednesday, 14/09/2022 | 11:00 GMT-0
14/09/2022 | 11:00 GMT-0