USD/HKD Chart — American Dollar to Hong Kong Dollar

That’s another exotic asset. Its daily trading turnover reaches 1.5 billion USD, which is a reasonably modest figure for the foreign exchange market. The vast majority of investors rarely trade it. Nevertheless, you can benefit from this currency pair if you utilize the right approach.

Basic Information

Hong Kong turns out to be the most significant financial as well as the economic center of Asia. So, it’s no wonder it attracts a high number of traders from all over the world. USD/ HKD is a low volatile financial instrument. It can be explained by the fact that the Hong Kong dollar is pegged to the evergreen buck. The currency pair USD/HKD can’t go beyond 7.75-7.85. If quotes leave those limits, the major bank intervenes to stabilize the national currency.

USD/HKD has a predictable rate. It makes this currency pair very attractive to investors. However, the USD/HKD quotes often standstill, thus making it difficult for an average trader to use it to derive steady gains.

The USD/HKD quotes are generally affected by:

  • GDP of the United States and Hong Kong;
  • the trade balance between these countries;
  • inflation rate.

Many significant nuances are affecting the quotes of this currency pair. The pair has a narrow price range rather. You’d better keep your eye open on Chinese events. They can significantly impact the economic situation in Hong Kong. Various crises can hurt the USD/HKD quotes.

This currency pair is known for its high predictability. It’s not difficult to predict its market move. However, the liquidity of this pair is relatively small – no more 1% a day.

The pair serves as a link between Hong Kong and America. The quotes of this pair are impacted by the correlation between the economies of the two trade partners. Their condition is often affected by different factors.

In this section of the website, one can monitor USD/HKD quotes at any time. Thus, you can rapidly analyze and forecast the future course of this financial instrument.

Trading Principles

The currency pair demonstrates modest dynamics in the exchange rate. You require a large trading deposit to earn good money on this pair. Another downside of this pair is that it’s incredibly vulnerable to global downtime.

The given currency pair is ideal for newcomers. Its high predictability enables novice traders to trade with excellent safety. It’s a rare asset, so you need to approach its analysis cautiously. You can hardly contact it the same way as other currency pairs. Here you should mainly rely on fundamental analysis.

You require an optimal model of money management when dealing with this currency pair. Avoid risking too much. Rely on the trading amount you can afford losing.

Notwithstanding the low volatility, USD/HKD steeply changes its course from time to time. Its bounces can be either bullish or bearish and hard to forecast.

At any time, the Hong Kong Central Bank may come up with an intervention to back its currency. You need to keep it in mind when working out a trading strategy for this asset. The given pair is suitable for scalpers. However, the vast majority of experts are assured that one would better utilize medium-term as well as long-term strategies in USD/HKD trading.

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