The foreign exchange market is also known by the name of Forex market and the world biggest and liquid market. Every day millions of dollars are traded between many parties. So, if you are new in the forex market then first learn basic concepts about the usually traded currencies and also what is their use in the different trading markets. Nowadays everyone is familiar with all these currencies and the strategies underlying.
1. US Dollar
US Dollar is a leading currency in the world and traded worldwide. It is number one in my currencies list because of its strength. The American dollar has paired with all other main currencies and most often act as a middleman currency in the trading. In the currencies list, it is at number one because it is widely traded in the world. Every country reserve bank held dollar that is why it is named as an Unofficial Global reserve currency.
Many countries official currency is dollar like the Australian Dollar, Canadian Dollar, and New Zealand dollar and this practice is known as the dollarization. Most of the countries are accepting the dollar as a secondary currency while they have also their own main currency.
Many online currency converter calculators available to measure the price of one US Dollar against other currencies pair
The dollar is a benchmark currency for other countries’ currencies. Many countries have set their exchange rate with American dollar to measure the strength of its currency rather than go into the free or independent market to see ups and down in the value of the currency.
Most of the commodities like metals and crude oil consider dollar as a standard currency. When dollar value increases or decreases the value of these commodities also fluctuate. However, other factors like demand and supply, inflation, interest rates have an impact on the value of dollars.
After Dollar, the Euro is the second major currency in the world for trading in the forex market. If you look at the reserve currency then it has second place. In the Europe region, most of the countries have a Euro currency. The Euro was introduced in the year 1999.
In order to strengthen the foreign exchange rates, many countries nail their currency with the Euro just like Dollar as above.
During some political events in the Europe region cause, high trading volume as many countries like Italy, Spain, and Portugal minimize their interest rates. Euro is the most debated or criticized currency in the forex market.
He currency converter calculator is used to measure the strength of the Euro with other countries currency
The yen is the 3rd largest currency traded in the world. It is also known as the most traded currency out of Asia. As Japan has a strong economy and it has a great impact on the currency as the Japan economy boosts the currency increases in its value. The Yen is used to measure the health of South Korea, Thailand, and Singapore currency strength.
The Yen is playing a vital role in the carry trade, the carry trade is a simple forex market concept where traders earn a profit by interest rates and price appreciation of the currency. The Japan government is maintaining a zero interest rate on the Yen and most investors use this currency to buy other countries with high-interest rate and earnings yield.
If you want to see the currency strength against another country then just go online and put the value in the currency converter calculator.
The GBP stands for Great British Pound is at number 4th in the list of most traded currencies list in the forex market. It has value in contrast to the American dollar, Japanese Yen and Euro. Recently the British are still in the European region and a referendum was held in the year 2016, in which 67 percent voters voted in the favor to remain in the Euro Zone while 52 percent voted not to remain in the Eurozone.
The official currency of Great British is a pound and the country decided to not choose the Euro as their currency. The two main forces impact on the pound are political stability and economy.
5. Canadian Dollar
As everybody knows Canadian dollar is the official currency of Canada and also known by the name of the loonie. Canadian Dollar value is measured with the fluctuation in the commodities markets. As the prices of the precious metals and crude oil fluctuate the value of the Canadian dollar moves up and down. In the world currencies list, Canadian currency is at number 5 in term of its value and trading.
The fluctuations in the USA economy and the dollar have a great impact on the value of the Canadian Dollar.
The currency converter calculator helps you to measure this Canadian currency against other currencies in term of price.