Forex Currency Trading

Which Currencies are traded within Forex

The majority of the volume in Forex trading is generated by 18 currency pairs. The eight currencies most often traded in Forex are:

  1. U.S. dollar (USD)
  2. Canadian dollar (CAD)
  3. Euro (EUR)
  4. British pound (GBP)
  5. Swiss franc (CHF)
  6. New Zealand dollar (NZD)
  7. Australian dollar (AUD)
  8. Japanese yen (JPY)

Hundreds of different currencies are traded within Forex, and they are all traded using pairs. Currency pairs are categorized in majors, minors and exotic pairs. The most traded Forex currency pairs that generate about 85% of the total volume are the following:

  • EUR / USD – Euro / US Dollar
  • GBP / USD – British Pound / US Dollar
  • USD / JPY – US Dollar / Japanese Yen
  • USD / CAD – US Dollar / Canadian Dollar
  • AUD / USD – Australian Dollar / US Dollar
  • USD / CHF – US Dollar / Swiss Franc

Each Forex pair is expressed in units of the quote currency. In each Forex pair, the former currency is called the base currency and the latter currency is the counter or the quote currency.

 

What Moves Forex Currencies 

The main factor affecting currency fluctuation is global demand. When the world demands more dollars, then the value of the dollar increases in relation with other currencies. The demand for a particular currency is determined by monetary policies like the interest rates, by new economic data like inflation and GDP but also from political and physiological factors.

 

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Related Links:

» FAQ for Forex Beginners at OnlineForex.biz

» Forex Live News

» Forex News at XE.com

 

More on Forex: » Forex for Beginners | » Forex Terminology | » Forex Tips | » Rating Brokers | » Compare Brokers

 

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