✅ Global Reserve Currency
Over 60% of central banks hold USD — it's the world’s most trusted currency.

✅ Commodities Priced in USD
Oil, gold, and other key commodities are all traded in dollars, driving global demand.

✅ Dominates Forex
The USD is part of 80–90% of all FX trades — it moves markets.

✅ Risk Sentiment Indicator
When fear hits, money flows into USD. When risk is on, USD often weakens.

✅ Moves All Majors
USD strength or weakness affects EUR/USD, USD/JPY, GBP/USD — even cross pairs.

▶ Core Drivers Of The USD

Federal Reserve (Interest Rate Policy)
 • Higher rates = stronger USD (foreign investors want better returns).

• US economic data (NFP, CPI, GDP, Retail Sales)
 • The Fed’s main job is to control inflation → Reports like CPI (Consumer Price Index) and PCE are key → High inflation can lead to rate hikes → boosts USD.
 • Strong job growth → strong economy → stronger USD.
 • Strong GDP → attracts foreign capital → USD demand rises.
 • Strong Retail Sales → more spending → higher demand → higher inflation → IR up → stronger USD

• Risk sentiment (safe haven flows)
 • The US has stable institutions, deep capital markets, and global trust. (At least it used to)
 • During uncertainty investors prefer JPY, CHF and NOW EURO (instead of USD)

• Geopolitical stability
 • Russian-Ukraine
 • Middle-east
 • Trade wars & tariffs
 • TaiwanFederal Reserve (Interest Rate Policy)
 • Higher rates = stronger USD (foreign investors want better returns).

• US economic data (NFP, CPI, GDP, Retail Sales)
 • The Fed’s main job is to control inflation → Reports like CPI (Consumer Price Index) and PCE are key → High inflation can lead to rate hikes → boosts USD.
 • Strong job growth → strong economy → stronger USD.
 • Strong GDP → attracts foreign capital → USD demand rises.
 • Strong Retail Sales → more spending → higher demand → higher inflation → IR up → stronger USD

• Risk sentiment (safe haven flows)
 • The US has stable institutions, deep capital markets, and global trust. (At least it used to)
 • During uncertainty investors prefer JPY, CHF and NOW EURO (instead of USD)

• Geopolitical stability
 • Russian-Ukraine
 • Middle-east
 • Trade wars & tariffs
 • Taiwan