Every currency has a personality. Know it, and the news makes more sense.
USDThe world's reserveFed, jobs, inflation, safe haven
EURSecond in lineECB, German data, energy
JPYThe safe havenBoJ, yields, risk-off
GBPThe volatile oneBoE, UK inflation, politics
AUDChina proxyRBA, iron ore, risk mood
CADOil currencyBoC, crude, US economy
CHFSwiss vaultSNB, haven flows
NZDDairy & riskRBNZ, dairy prices
Quick profiles
- USD: the world's reserve currency. Watches the Fed, jobs and inflation. Strengthens in panics.
- EUR: driven by the ECB and German data. Sensitive to energy prices.
- JPY: a safe haven. Watches the BoJ and the gap between US and Japanese yields.
- GBP: volatile. Moves on BoE decisions, UK inflation and politics.
- AUD and NZD: risk-on currencies linked to China and commodities.
- CAD: follows oil and the US economy.
- CHF: a safe haven managed by the SNB.
Wick says
Think of them as characters in a show. USD is the main character. JPY hides when there's trouble. AUD shows up when the party's going well.
Key takeaways
- Each currency has its own key drivers.
- Safe havens: USD, JPY, CHF (and gold).
- Risk currencies: AUD, NZD, and often CAD.