Major currencies in the Forex market

a)The U.S. Dollar

Being the world’s most recognized currency, the USD is also the universal currency used to appraise its currency counterparts, namely other currency pairs when trading in the Forex markets. Its status as a premier currency began just as the Second World War ended. All currency values are conventionally quoted in USD. Even when the world is rife with economic and political turbulence, the USD has been lauded for being the most stable and established currency. When the infamous economic downturn occurred in Southeast Asia during the late 20th century, the USD proved that it can withstand the crisis and emerge the steadiest currency at the time.

When the Euro first came into the scene, many expected it to be the cause of downfall for the USD but alas, it was not to be. Its introduction towards the end of the 20th century only mildly affected the strong USD currency.

Other significant currencies to find themselves traded opposite the USD include the Japanese yen, the Swiss franc and of course, the British pound sterling.

b) The Euro

The Euro was created with supremacy in mind. Similar to the USD, the Euro draws its strength from its steadfast standing as one of the European Monetary Union members. Throughout the years since it was introduced in 1999, the Euro has been battling against imbalanced growth, rising rate of redundancy as well as government inability to accept constructive development. Towards the end of the year 2000, many investors and Japanese traders found themselves over-investing in assets bound by the Euro currency and were left with no choice but to sell them off.

c) The Japanese Yen

Being the third most popular currency across the globe, the Japanese yen is not as significant as its USD or Euro counterpart but it still commands a formidable presence in the Forex trading scene. It is very favored by Japanese traders and businessmen and is very much inclined towards the Japanese Nikkei index as well as the real estate industry.

d) The British Pound

The British pound used to be the most renowned and strongest currency but that all changed come the end of World War Two, and can usually be founded traded in the same currency pair as the USD and Euro dollar

e) The Swiss Franc

Surprisingly, the Swiss Franc is the sole currency that did not originate from the European Monetary Union or any of the G-7 nations. Although it appears to be insignificant at first glance, the Swiss franc reflects the powerful and superior Swiss economy. Switzerland has also forged strong financial ties with Germany, contributing to its relationship with the Euro currency. The Swiss franc has enjoyed being called one of the most unwavering currencies of all time besides the USD and has great capacity for liquidity, therefore making it resemble the Euro all the more.