The USD/CZK currency pair can be defined as a secondary Forex asset. Most investors ignore it. However, you can still earn good money on it with the right approach. This currency pair is exotic but quite enjoyable.
USD/CZK is a currency pair demonstrating the value of the evergreen buck, expressed in Czech korunas. Well, the amount of this asset is profoundly affected by EUR quotes due to the fact the Czech Republic happens to be a member of the EU. You require closely watching the critical eurozone events to trade this asset successfully.
This currency is also known for its beautiful banknotes. The well-known artist-illustrator Ondzhih Kulganek worked on their design. There’s no doubt Czech korunas are among the most stunning money worldwide.
The history of this currency is closely connected with the era of Austria-Hungary. A new monetary unit dubbed the koruna was introduced in the empire. One koruna was made up of 100 coins – Hellers. Czechoslovakia became independent in 1919 after the end of World War I. The new state started issuing its currency that preserved the name of the old imperial money.
The Czechoslovak currency was utilized until 1993. Once the country split into the Czech Republic and Slovakia, each state started issuing its own money. However, from the very beginning, the old banknotes were used, with new symbols glued.
Now, CZK turns out to be one of the most stable currencies of Eastern Europe. The Czech Republic boasts the most powerful economy in the region. A considerable portion of exports goes to Germany. Of course, we should note that the Czech Republic and the USA can’t be compared in terms of economic strength. CZK can only boast regional importance, while USD happens to be a reserve world currency. In general, it’s hard to overestimate the significance of the evergreen buck in the world.
The currency pair USD/CNH is greatly influenced by news from China and America. Special attention needs to be paid to changes in discount rates. Moreover, it’s also necessary to closely watch the changes in macroeconomic indicators of the two nations. The publication of important news can generate considerable volatility of the currency pair.
The US dollar happens to be the primary currency in the foreign exchange market. It’s present in nearly all currency pairs. The US significant financial watchdog, the Federal Reserve issues USD and also takes other measures to boost the American economy and monetary system.
Decisions made at Fed meetings significantly affect the USD rate. As a trader, you are bound to closely watch such crucial events that cause high volatility in the Forex market.
If you want to succeed in trading this pair, you require sticking with standard trading approaches. For example, rely on technical and fundamental analysis. Moreover, you need to pay attention to the eurozone news. Any critical changes in the EU economy significantly affect the value of the Czech koruna. Furthermore, you should closely watch US news.
USD/CZK is most actively traded during the European session. However, the release of American macroeconomic indicators may also increase the volatility of this asset. During the Asian session, the pair is quite calm.
You’d better rely on Taking Profit and Stop Loss orders. They will enable you to protect your trading deposit from significant losses and take profits on time. What’s more, pending orders will allow you to approach your trading in a strict and well-disciplined way and act in compliance with your strategy. Don’t overdo with leverage. The maximum risk in one deal shouldn’t exceed 5% of your trading deposit if you don’t want to face fatal losses.