Currency Charts: USD to HKD

The daily turnover of this exotic asset reaches up to $1.5b that is instead a modest outcome for the Forex market. Most traders neglect this asset. However, with the right approach, you profitably trade this currency pair.

Key information

Being the most significant economic and financial center of Asia, Hong Kong attracts a massive number of investors from the entire world. We can define USD/HKD as a low volatile currency pair. It’s because it’s pegged to the greenback. The pair isn’t allowed to go beyond the 7.75-7.85 range. If quotes dare to do it, the significant financial institution intervenes to stabilize HKD.

The exchange rate of this currency pair is entirely predictable, which makes it very attractive to many investors. At the same time, it might be difficult for an average trader to derive steady profits from it since its quotes are often intact.

The following factors impact the quotes of this pair:

  • Inflation rate
  • The trade balance between these countries
  • GDP of these countries

Several vital factors are affecting the quotes of this asset. The pair demonstrates a narrow price band. You should carefully watch Chinese events because they are capable of significantly influencing the economic situation in Hong Kong. Moreover, various crises can hurt the pair.

The pair boasts exceptional predictability. It’s an easy task to forecast its market move. On the other hand, the pair’s liquidity is no more 1% a day, which is a tiny outcome.

We can regard this pair as a direct relationship between American and Hong Kong. Respectively, this pair’s quotes are influenced by the correlation between the two trade partners’ economies, and we should admit that different factors often influence their condition.

In this section of the portal, you can closely watch USD/HKD quotes. It will help you to analyze and predict the future course of this asset.

Trading principles

The currency pair shows modest dynamics. You can’t do without a large trading deposit if you want to earn good money on this asset. Another con of this pair is that it’s very vulnerable to the global meltdown.

Newbies can hardly find a better currency pair to get started than USD/HKD because it’s incredible predictability allows novice traders to trade safely. Since it’s a rare asset, you require cautiously approaching its analysis. You can’t treat this currency pair as others. Fundamental analysis is what you should focus on when dealing with this currency pair.

Don’t forget about your money management. You shouldn’t risk a significant portion of your trading deposit. Don’t lose more than you can afford.

Despite the low volatility, the pair periodically changes its course. Its jumps can be either bullish or bearish and challenging to predict.

At any time, Hong Kong’s significant financial institution intervenes to back its currency, and you should keep it in mind when developing a trading strategy for this asset. It’s useful for scalpers, but many experts are assured that for this currency pair long-term and medium-term strategy are the best.

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