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 Forex trading volumes are seen in the following currencies:

US dollar – US dollar transactions account for the lion's share of total currency trading volumes. Estimates place this figure between 30 and 40 percent.

Trading this currency is both complex and simple, and you can easily find news and major economic index releases by consulting the forex calendar . This trading instrument is quite capricious and unstable, with its exchange rate fluctuating almost constantly.

Maximum activity occurs during the American trading session.

The euro is the second most popular currency and has the same properties as the previous currency. Its main difference is that exchange rate changes are triggered by news from any country within the Eurozone.

For example, news from Greece about a high probability of default immediately causes the euro to decline against other global currencies.

Correspondingly, the largest volumes are seen during the European trading session.

The Japanese yen is the third most popular currency, a rather interesting option, especially for those traders who prefer to trade early in the morning.

Most traders prefer to profit from the Japanese Yen during Bank of Japan interventions, which is when its exchange rate significantly declines.

The British pound is the fourth most popular currency on Forex, a respectable position, favored by some of the world's major banks. It

is a stable currency and is primarily used in conjunction with the three previous instruments.

Australian Dollar : Australia is one of the world's leading agricultural producers, resulting in stable demand for its currency.

Trading primarily occurs during the Asian trading session, but demand is equally stable during other trading sessions.

The Canadian dollar is also a popular currency; although its trading volumes are not as large, it still accounts for 2 to 3 percent of total turnover.

The Swiss franc is one of the world's most stable currencies, and it has recently been increasingly used to build up gold and foreign exchange reserves.

Currency pairs are formed from the listed monetary units on Forex; this issue was discussed in more detail in the article “ The most popular currency pairs ”.