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About the USD/HKD (US Dollar and Hong Kong Dollar)
The USD/HKD pair is the abbreviated term used for US Dollar and Hong Kong Dollar. the US Dollar and Hong Kong Dollar do not have a nickname. Before we get into the particulars, what exactly does the USD HKD rate mean? The exchange rate tells you how many Hong Kong dollars (the quote currency) are required to purchase one US Dollar (base currency). For example, if the pair is trading at 7.85, it means it takes 7.85 Hong Kong dollar to buy 1 US Dollar
Breaking Down ‘USD/HKD‘
The United States dollar, or the American dollar, is the official currency, or money, of the United States of America and is also used in a number of different countries across the border. It is also the standard money for global markets selling goods such as gold and oil (fuel). While writing, the symbol for the American dollar is the dollar sign ($). Dollars can also be known as USD (U.S. Dollar).
The Hong Kong dollar (code: HKD) is the official currency of the Hong Kong Special Administrative Region. It is divided into 100 cents. The Hong Kong Monetary Authority is the governmental currency board and also the de facto central bank for Hong Kong and the Hong Kong dollar. the 13th-most-traded currency in the world. In addition, USD/HKD is the 11th-most-traded currency pair
The U.S. Dollar vs. the Hong Kong Dollar. This is the most popular pair to trade the Hong Kong currency. Many consider HKD to be the gateway of capital into and out of the world’s second largest economy, China since both are becoming frequently got mixed together.
Correlation is merely a mutual relationship or connection between two or more things.
Positive correlation – The positive relationship merely is when pairs move in tandem with each other.
In the forex world, the XBR/USD, EUR/MXN, and GBP/MXN pairs are positively correlatedNegative correlation – In contrast, a negative relationship is when forex pairs move in the opposite direction, For example, XBRU/SD, XTI/USD and EUR/TRY
Economic Events: The movement in the US Dollar economic and Hong Kong Dollar events determine the exchange rates. Top of the line economic events includes GDP, Employment Change, Industrial Production, and Consumer Price Index. Better than forecast data increases the demand for related currency and impacts the value of either the US Dollar and Hong Kong Dollar, causing fluctuations in the USD HKD exchange rate.
Major Economic Events
Gross Domestic Product – the gross domestic product is the central measure of economic growth in the region.
Employment Change – The Sterling is also sensitive to changes in employment, as slacks in the labor market causes a drop in Inflation rates.
Consumer Price Index – Since one of the goals of the BOP is to maintain price stability, they keep an eye on inflation indicators such as the CPI. If the annual CPI deviates from the central
Industrial Production – This measures a change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.
Political Events - Another critical factor is the political aspect. Instability, as seen in the Brexit referendum, can entirely change the direction of the currencies. So, stay up-to-date on the latest political and economic news.
What Determines the USD/HKD exchange Rate?
Several factors can impact the USD/HKD rate valuation, including:
USD/HKD Monetary Policies: Federal Reserve System and Hong Kong Monetary Authority control the supply of money in the market, to keep the economy on track. A dovish policy, which is also known as expansionary policy, from either of the central banks, weakens the related currency. In contrast, a hawkish monetary policy (contractionary policy) strengthens the currency
The USD/HKD is traded in amounts denominated in the US Dollar.
Standard lot Size: 100,000
Mini lot size: 10,000
One pip in decimals 0.0001
Pip Value: $1.27