{"id":159895,"date":"2019-11-15T12:05:12","date_gmt":"2019-11-15T17:05:12","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=159895"},"modified":"2019-11-15T10:29:49","modified_gmt":"2019-11-15T15:29:49","slug":"which-is-the-most-stable-currency","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/11\/which-is-the-most-stable-currency\/","title":{"rendered":"Which Is The Most Stable Currency?"},"content":{"rendered":"
November 15, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

The notion of what constitutes a \u201cstable\u201d currency is a little different for every forex trader because it can have different implications depending on their trading style.<\/p>\n

For most people, when you ask about the stability of a currency, people want to know if it will keep its value over time. In other words, usually, the one with the least inflation.<\/p>\n

Forex traders are interested in how much the price of different currencies changes between each other, which is an entirely different question. In fact, in many cases, what a forex trader is thinking is often which is the most stable pair.<\/p>\n

As usual, forex takes what should be a simple question, and then offers a much more complicated answer.<\/p>\n

Biggest Isn\u2019t Always Best<\/strong><\/h2>\n

With a wide range of criteria for stability, it\u2019s not surprising that there are several currencies that could be considered the most stable.<\/p>

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First would probably be the\u00a0USD<\/strong>, which is still the world\u2019s reserve currency and primary safe haven. Other currencies\u2019 changes in value are measured against the dollar, making it effectively the currency yardstick.<\/p>\n

Those factors don\u2019t mean, however, that the currency isn\u2019t subject to volatility in the markets. For a forex trader, who\u2019s primarily interested in the price changes in currencies, this is an important gauge of stability.<\/p>\n

The\u00a0CHF\u00a0<\/strong>often fills this role. The currency is tied to gold and the Swiss National Bank takes a hard-line stance on currency appreciation. Therefore, the franc is among the currencies with the least volatility.<\/p>\n

Unconventional Measures<\/strong><\/h2>\n

But if it\u2019s just daily ups and downs that we are looking at, maybe the\u00a0CNY<\/strong>\u00a0could be considered the most \u201cstable\u201d since it is strictly controlled by the POBC within a certain range. But, it\u2019s not a free-float currency. And it can change in value depending on the political interests of the country.<\/p>\n

Norway\u2019s would also be another currency that many might not immediately think of. But the\u00a0krone<\/strong>\u00a0is considered one of the safest currencies because Norway doesn\u2019t have any net debt.<\/p>\n

It\u2019s a stand-alone currency and it isn\u2019t tied to any other country. However, Norway is highly dependant on oil exports, which can generate some unexpected moves.<\/p>\n

The Other Classics<\/strong><\/h2>\n

Another candidate for the title of the most stable in the usual understanding would be the\u00a0JPY<\/strong>.<\/p>\n

The yen has had low inflation for an extended period of time, despite the BOJ\u2019s efforts. However, the country has the highest debt in the world. Even so, Japan is a safe haven in times of uncertainty, and the currency can change value with respect to others depending on market risk perception.<\/p>\n

Gold\u00a0<\/strong>is still technically considered a currency<\/a>\u00a0and is an attractive store of value. However, compared to currencies in general, its price tends to vary considerably in the long and medium-term. Although it remains the go-to as a store of value, market perception of risk creates\u00a0wide fluctuations in value.<\/a><\/p>\n

So, Which Is It?<\/strong><\/h2>\n

In the end, currency stability for a forex trader is something of a subjective idea.<\/p>\n

Are you looking for a long-term currency that won\u2019t fluctuate as much as others? Then probably you\u2019re thinking of the US.<\/p>\n

But if you\u2019re looking for daily stability in that there won\u2019t likely be a lot of price action, then you\u2019re probably thinking the EURCHF cross.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex The notion of what constitutes a \u201cstable\u201d currency is a little different for every forex trader because it can have different implications depending on their trading style. For most people, when you ask about the stability of a currency, people want to know if it will keep its value over time. In other […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-159895","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/159895","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=159895"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/159895\/revisions"}],"predecessor-version":[{"id":159906,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/159895\/revisions\/159906"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=159895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=159895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=159895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}