Popular currencies on Forex.
One of the main points of Forex trading is choosing the most successful trading instrument, which in this case is currency pairs.
Currency pairs are formed from two currencies; the more popular these currencies are on Forex, the higher their liquidity, which means the lower the average broker’s main commission.
Popular currencies on Forex not only have the lowest spreads, it is easier to find the necessary information on them, and a larger number of different advisors and indicators have been created for these instruments.
The largest volumes of trading on Forex are observed in the following currencies:
American dollar - it is transactions with the US dollar that have the lion's share in the total volumes of currency trading.
According to some estimates, this figure ranges from 30 to 40 percent. Trading this currency is both difficult and simple, in addition to the fact that you can easily find news and publications of the main economic indices by looking at the Forex calendar .
This trading tool is quite capricious and unstable; its rate changes almost constantly. Maximum activity during the American trading session.
The euro is the second most popular currency and has the same properties as the previous monetary unit.
Its main difference is that changes in the exchange rate are caused by news from any of the countries included in the Eurozone. For example, a message came from Greece about a high probability of default; the euro immediately began to decline relative to other world currencies.
The largest volumes are respectively at the European trading session.
The Japanese yen is in third place in popularity, a rather interesting option especially for those traders who prefer to trade early in the morning.
Most traders prefer to make money on the Japanese Yen during interventions by the National Bank of Japan.
It is at this time that its rate decreases significantly. The British pound ranks fourth among the popular currencies on Forex, a place of honor; this is the currency that some of the world's largest banks prefer to use in their calculations.
The monetary unit is stable and is mainly used in combination with the three previous instruments.
Australian dollar – Australia is one of the world leaders in the production of agricultural products, hence the stable demand for its currency.
The main trading takes place during the Asian trading session, but no less stable demand is observed during the operation of other trading platforms.
The Canadian dollar can also be classified as a popular currency; the volume of transactions involving it is not so large, but still its share is from 2 to 3 percent in the total turnover.
The Swiss franc is one of the hardest world currencies; recently it has been increasingly used to create gold and foreign exchange reserves.
Currency pairs are formed from the listed monetary units in Forex; this issue was discussed in more detail in the article “ The most popular currency pairs ”.