Introduction
Tracking currencies is crucial for traders and investors looking to make informed decisions in the forex market. In 2021, several currencies have shown potential for significant movements and profitability. In this blog post, we will discuss some of the currencies that you should track in 2021 to stay ahead of the game. Let’s dive in.
1. United States Dollar (USD)
The US dollar continues to be a major currency to track in 2021. As the world’s reserve currency, it is influenced by various factors such as economic indicators, central bank policies, and geopolitical events. Changes in the US dollar can impact other currencies as well. Keeping a close eye on the USD can provide insights into broader market trends and potential trading opportunities.
2. Euro (EUR)
The euro is another currency that should be on your radar in 2021. As the currency of the Eurozone, it is influenced by economic data releases, political developments, and decisions made by the European Central Bank. Tracking the euro can help you identify potential trading opportunities, especially when paired against other major currencies like the USD.
3. British Pound (GBP)
With ongoing Brexit negotiations and their impact on the UK economy, the British pound is expected to experience volatility in 2021. Keeping track of the pound can help you navigate potential trading opportunities and risks arising from Brexit-related developments. Economic indicators, trade agreements, and political events should be monitored to stay informed about the GBP’s performance.
4. Japanese Yen (JPY)
The Japanese yen is often considered a safe-haven currency, sought after during times of market uncertainty. Tracking the yen can provide insights into investor sentiment and risk appetite. Economic data releases, central bank policies, and geopolitical developments can impact the yen’s value. Paying attention to these factors can help you identify potential trading opportunities involving the JPY.
5. Australian Dollar (AUD)
The Australian dollar is influenced by various factors, including commodity prices, economic data, and global market trends. As a currency tied to commodity exports, tracking the AUD can help you gauge the health of the global economy and potential trading opportunities. Monitoring commodity markets, economic indicators, and geopolitical events can provide valuable insights into the AUD’s performance.
6. Canadian Dollar (CAD)
Similar to the Australian dollar, the Canadian dollar is influenced by commodity prices, particularly oil. Tracking the CAD can provide insights into global oil market trends and potential trading opportunities. Economic indicators, central bank policies, and geopolitical events should be monitored to stay informed about the CAD’s performance.
Conclusion
Tracking currencies is essential for navigating the forex market in 2021. Currencies like the US dollar, euro, British pound, Japanese yen, Australian dollar, and Canadian dollar should be on your radar. By staying informed about economic indicators, central bank policies, geopolitical events, and market trends, you can identify potential trading opportunities and make more informed decisions. Remember to conduct thorough research and analysis before executing any trades.