Top 8 Traded Currencies in the Forex Market and Their Global Impact | BR Trading

All the world’s currencies are traded in the Forex market and are divided into two categories:

🔹 1. Major Currencies:

These are the strongest and most traded currencies in the world. There are five main ones:

  • USD – U.S. Dollar

  • EUR – Euro

  • GBP – British Pound

  • JPY – Japanese Yen

  • CHF – Swiss Franc

🔹 2. Minor Currencies:

The most well-known among them are the following three:

  • CAD – Canadian Dollar

  • AUD – Australian Dollar

  • NZD – New Zealand Dollar

As Forex traders, we mainly focus on these eight currencies, as they dominate the market and are the most traded.

💡 How Are Currency Codes Formed?

The International Organization for Standardization (ISO) has created a naming convention for currencies. Each currency is given a three-letter code:

  • The first two letters usually represent the country

  • The third letter represents the currency name
    (with some exceptions)

Examples:

  • USD → United States Dollar

  • CHF → Confederation Helvetica Franc (the Latin name for Switzerland)

  • SAR → Saudi Arabia Riyal

🌍 Why is the U.S. Dollar (USD) the Most Powerful Currency?

Because it has held a leadership position since the end of World War II, following the Bretton Woods Agreement, where global currencies were tied to the U.S. dollar.

The U.S. dollar is the main reserve currency held by central banks worldwide and is the standard unit for pricing major commodities like gold, oil, and silver.

Thus, the USD is often called the undisputed king of global currencies.

📊 Importance of Major Currencies in Forex Trading

Trading with major currency pairs is one of the key features of the Forex market for traders.
About 90% of Forex trading volume involves these major currencies:

  • USD, GBP, EUR, JPY, CHF, CAD, AUD, and NZD

Following their movements offers great trading opportunities.

Due to their large market share, these currencies attract the most attention from traders and investors, leading to high liquidity and volatility in the major Forex pairs.

📈 According to the Bank for International Settlements (BIS) statistics for 2022, these major currency pairs dominate global trading volume.

📘 Stay tuned for the next lesson to learn more about the Forex market.