The most popular currencies in the Forex market
Automatic translateAny world currencies are involved in trading on the Forex currency exchange, but there are several major currencies called “major currencies”. These currencies have higher trading volumes than other currencies. The main exchange currencies are highly popular among stock traders. Such high popularity is explained by the fact that the main currencies have a stable exchange rate and high liquidity.
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In total, there are five quoted currencies on the foreign exchange market. This is due to the fact that the countries they represent have developed and stable economies, and their Central Banks have the ability to manage inflation risks. Among these five major currencies, the most popular are:
- US dollar (special code RIC - USD), symbolic designation $, OKW code 840, English spelling United States Dollar;
- Euro (special code RIC - EUR), symbolic designation, OKW code 978, English spelling Euro;
- Japanese Yen (special code RIC - JRY), symbolic designation, OKW code 392, English spelling Japanese Yen;
- Swiss franc (special code RIC - CYF), symbolic designation, OKW code 756, English spelling Swiss Franc;
- British pound sterling (special code RIC - GPB), symbolic designation, OKW code 826, English spelling British Pound.
In terms of the amount of transactions, these currencies account for the bulk of sales on the market. Let’s consider each currency separately, and say thanks for this information to the site GoForex.info , which reveals many secrets of this exchange.
US dollar (USD). By far, the US dollar is the most sought-after market currency. More than 80% of transaction volumes are in the US dollar. In addition, the American dollar is used as a payment equivalent in more than twenty countries around the world. The US dollar also benefits from the fact that for many years it has been a reserve currency in many national banks.
After the end of World War II, the American dollar took the leading place, displacing the pound sterling, taking advantage of the post-war weakening of Great Britain. To this day, the dollar has not weakened its position. Experts in the field of finance believe that such extensive influence of the American financial market could lead to global economic and financial crises. To calculate an objective quote for the US dollar, you have to use the average exchange rate in relation to the main world currencies.
Euro (EUR). It was very difficult for European states to switch to a single currency. This was achieved thanks to the hard work of the leaders of several European countries such as France, Germany, Italy and other countries. Before the euro, there was the so-called Synthetic Currency ECU (ECU European Currency Unit). The date of birth of the euro is considered to be January 1, 1999. This currency originally united the eleven most powerful countries in Europe. The powerful union initially included the following countries: Luxembourg, Austria, Ireland, Finland, Portugal, Germany, the Netherlands, Belgium, France, Italy and Spain. At the initial stage, the merger of states and the allocation of a single currency was not successful, the euro exchange rate was unstable and fell all the time. Then, after the American stock market crisis, the euro strengthened and its rate went up. To this day, the euro continues to have a higher exchange rate than the US dollar.
Japanese Yen (JRY). This currency occupies a fairly strong position in the foreign exchange market. The Japanese Yen is used by many countries as a reserve currency. The Yen began its existence in 1881. Since the beginning of world currency trading, its exchange rate has constantly fluctuated both in the direction of rapid decline and growth. The Japanese Yen became the dominant currency in 1998.
Swiss franc (CYF). The Swiss franc has become one of the dominant currencies in the Forex market due to the strength of the Swiss economy. Many large corporations believe that investing in the Swiss economy is a completely safe and profitable investment. The Swiss franc does not reach such large trading volumes as the US dollar or the Euro, but due to the stability of the exchange rate, it is very popular among traders.
British pound sterling (GPB). This currency is quite popular on the world currency exchange; more than 14% of transactions take place with its participation. This is due to the fact that a large number of currency trading takes place on the London Currency Exchange. And this is about thirty percent of world currency trading. The British pound sterling has long occupied the first position, which it lost to the American dollar.
For all currencies quoted on the Forex market, there are certain symbols. Each currency is assigned an information code - Reuters Information Code, abbreviated RIC. For example, for the American dollar the information code is USD. In addition to international quotations, the All-Russian Currency Classifier, abbreviated OKV, is used. Each currency is assigned a specific digital code. For example, for the US dollar – 840. The currency classifier is mainly used for accounting of currency receipts, for statistical accounting, as well as for international payments.
In addition to the main currencies on the Forex market, other currencies are traded, the percentage of which in day trading is insignificant, these are:
- Canadian dollar (special code RIC - CAD), OKW code 124, English spelling Canadian Dollar;
- Australian dollar (special code RIC - AUD); OKV code 036, English spelling of Australian Dollar;
- Danish Krone (special code RIC - DKK), OKW code 208, English spelling Danish Krone;
- Hong Kong dollar (special code RIC - HKD), OKW code 344, English spelling Hong Kong Dollar;
- Singapore dollar (special code RIC - SGD), OKW code 702, English spelling Singapore Dollar.
For trading, traders can use other currencies present on the market; their trading turnover is small, but they, like the main currencies, can bring profit in a successful transaction.