Is the US the strongest global economy?

US credit now rates AA+ according to Fitch ratings, a tier below many other major economies in Europe. However, many other metrics such as interest rates, employment data and stock performance speak to US resilience and good economic health.

Interest rate breakdown

The US continues to lead major economies in interest rates at 5.5%. High rates set by the Fed are meant to lower inflation, but also signify economic strength. The central bank is able to raise rates to such a level because they believe businesses and consumers are doing well enough to handle the increase without total collapse. The Fed relies on various data from consumer price indexes and nonfarm payrolls to estimate the state of the economy and set rates.

This thinking translates to forex markets particularly in pairs like USD/JPY which have a large gap in overnight interest rates. The pair has been performing historically well, nearing its 30 year highs once again.

USD/JPY historical prices

How to trade US dollar

1. Open an account to get started, or practice on a demo account
2. Choose your forex trading platform
3. Open, monitor, and close positions on USD pairs

Trading forex requires an account with a forex provider like tastyfx. Many traders also watch major forex pairs like EUR/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.

You can help develop your forex trading strategies using resources like tastyfx’s YouTube channel. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.

Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.