The forex major currencies are the seven most Traded in the Forex Market by Volume ,
and are : the U.S. dollar (USD), the euro (EUR), the Canadian dollar (CAD), the Japanese yen (JPY), the British pound (GBP),
the Australian dollar (AUD), and the Swiss franc (CHF), so let’s see every one of theme:
1-The U.S. dollar:
The U.S. dollar is still the most heavily traded global currency
and has maintained its status as the world’s reserve currency.
Most central banks around the world maintain U.S. dollar
reserves, and that adds to its influence, as do the fundamental
news and data releases related to the U.S. economy, which is
the world’s largest. Because of this, the U.S. dollar, also known
as the greenback, is a “flight to quality” currency; this was reaffirmed
in mid-2008 when global stock markets came tumbling
down and monies quickly flowed into dollars, creating a sharp
and sustained rally for this currency. The global marketplace
is a dynamic pricing apparatus that always is subject to change.
However, at this time, the greenback is still the world’s reserve
currency. Because of this, all the other major currencies are
quoted in relation to the U.S. dollar. The most influential factors
in the pricing of the dollar come from the policies of the
U.S. Federal Reserve, which is the central bank of the United
States, and the U.S. Treasury.
The euro is the currency of the European Union and is second
only to the U.S. dollar in terms of reserves held by other
countries and central banks. Because of this, the EURUSD is the
most heavily traded currency pair. The most influential factors
in pricing the euro against other currencies are the policies of
the European Central Bank. A consideration in understanding
European Central Bank policies is that rather than speaking for
one independent entity or country, it must balance the economic
interests of many.
3-The Great Britain pound:
The Great Britain pound is arguably the oldest of the major
currencies, with its issuer, the Bank of England, having been
around since the 1600s. It is ranked third in currency reserves
held around the world. GBPUSD is a heavily traded currency
pair that in recent history has been a leader among the majors,
having led the rally in 2006 and 2007 and having topped in
2008 and led the majors lower from there.
4-The Japanese yen:
The Japanese yen is a very influential currency in that the
Japanese economy is the second largest in the world and that
nation’s currency is the primary Asian representative in the
forex markets. The central bank of Japan is the force behind the
yen and is known for being more active than the other major
central banks when it comes to managing the national currency.
5-The Canadian dollar:
The Canadian dollar is an influential currency because of the
richness of that country’s natural resources; the fact that it
shares a border with the United States, the world’s largest
economy; and its European connections on its eastern coast
and its Asian connections on its western coast. Canada is a
truly 24-hour-a-day country.
6-The Australian dollar:
The Australian dollar has become more and more influential
over the last two decades as that country has become a major
exporter of commodities to the growing Asian economies. Its
location on the “global clock” also makes it an attractive currency
for traders working the “third” shift: 4 p.m. to midnight Eastern
Introduced in 1850, the Swiss franc (CHF) is the official currency of Switzerland
Liechtenstein and the Italian exclave of Campione d’Italia
and is the only franc remaining in Europe.
The Swiss franc, ranked as the seventh most traded currency in the world
, has gained in popularity mainly due to being a safe-haven currency.
Therefore, many governments and financial institutions hold CHF as a
hedge against instability in many types of investments and markets.
What are major Forex pairs in the market?
A currency pair is a make up of two currencies, Consider the AUD/USD as an example ,
the currency on the left (the euro) is called the base currency and the currency
on the right is called the quote currency.
The currency pairings that are most frequently traded for speculative purposes
or that account for the largest volume of economic transactions are simply
referred to as major forex pairs.
We can say that the major currency pairs on the forex market are the EUR/USD, USD/JPY, GBP/USD, and USD/CHF,
USD/CAD, AUD/USD, and NZD/USD.