From over 180 currencies being used around the globe, only half a dozen is being traded on the Forex market. We’ll reveal which are the most popular traded currencies in the Forex market in 2018?
The United States Dollar:
Without a doubt the US dollar is the most dominant currency and it doesn’t even have a serious competition. The dollar earned this popularity through economic dynamism and the long-term government stability of the United States. Being less affected by inflation the dollar gained a very consistent value and this value made many foreign governments to keep their reserve currency in dollars. It is a fact that the US dollar is on the very top of the most traded currencies, at least for now.
The Euro: is the next most traded currency even though is a youngest of them all. Currently there are around 500 million people in Europe and Africa that use this currency and its importance in time is very likely to increase considerably. If you are planning to trade the US dollar, keep a close eye on all the US economic data available and be up to date with all the updates released by the Federal Reserve, both being highly responsible for the fluctuation of this currency.
The Japanese Yen: this currency has tripled its value over the last decades due to the substantial investments made by the Japanese in several US institutions. These purchases and investments made the Japanese Yen to grow, becoming one of the most important currencies in the foreign exchange market.
The British Pound: for a few decades it was the proud bearer of the silver medal in the competition for the best currency. The decline of the British Empire and the rapid rise of the euro sent the British Pound back to the fourth place, diminishing its glory. Only 6% of all the foreign trades are being made under the British pound
The Australian Dollar: Even though this currency was created only in 1966 to replace the Australian pound, it quickly became one of the most popular currencies that is being traded throughout Oceania and the entire Asia-Pacific region. It gained its place due to its relative freedom on the Forex market, government interventions and due to the general stability of the Australian economy.