Originally posted at the ForexFactory on May 2, 2008.
Yes, the safest currency would be the one you use day-to day.
Since you already place speculative trades in forex, there is no need to place a speculative trade on which way the currency in your account is going to go. Unless of course you can somehow predict which currency can appreciate over the long-term.
I live in the U.S. so I would use the USD and I wouldn’t care if it depreciated 20% this year. Sure if I go on at trip to europe it will seem really expensive, but unless I have a business dealing with foreign currencies and need to perform hedge transactions I wouldn’t care where the dollar went. The domestic inflation rate is more important than how much the dollar depreciates on the foreign exchange, in regards to the impact on my cost of living.
Bottom line is just trade the system you have developed, and don’t worry too much about which currency your account is denominated in. Most major central banks nowadays are able to keep the domestic inflation rate at a low level.