YET ANOTHER REASON
Now you have several reasons you should consider becoming a specialist in trading the U.S. dollar:
1. The currency pairs involving USD comprise about 90 percent of all forex trades.
2. The USD is the reserve currency of the world.
3. The USD is bought as petrodollars by governments around the world for their energy needs.
4. All of these greatly increase demand for the USD.
The USD is unique indeed! For forex traders, there is no better currency in which to specialize. These characteristics are advantageous to the currency, as they have built-in demand that props up its value.
However, will this bullish system of petrodollars continue forever for the USD? Only time will tell. But it is doubtful. In current news there are rumors that Saudi Arabia, worried about the depreciating dollar, will drop its peg to the USD and also start accepting payment for its oil in euros, as well as USD. That will be bearish for the USD.
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