Check our Instrument Specification page to see which currency pairs you can trade on with XTB. Each currency pair has a base which is the first denoted currency, and a counter, which is the second denoted currency. As there are two currencies in each pair, there are essentially four variables you are speculating on when it comes to currency pairs. Like the United States dollar, some countries peg their currencies to the euro to keep them stable and protected against exchange rate fluctuations. As one of the most valuable and most traded currencies in Africa, the Zambian Kwacha is the local currency of Zambia, a landlocked country in South Africa.

The British Pound the oldest currency globally that is still in circulation. It is also the third most popular reserve currency , plus the fourth most traded currency. With the UK leaving the EU after Brexit in 2020, the Pound is unlikely to adopt the Euro any time soon. The Pound versus US Dollar exchange rate, GBPUSD, is commonly known as Cable in the Forex world, which comes from the 19th century when the exchange rate was transmitted across the Atlantic by a submarine cable. The US Dollar is the primary reserve currency globally and dominates international trade. The supply of US Dollars is controlled by the US central bank, the Federal Reserve.

The renminbi for the first time entered the list of top 10 most traded currencies, according to the latest triennial foreign exchange market survey by the Bank for International Settlements released on September 5. The dollar is just one of the world’s 185 currencies according to the International Standards Organization List, but most of these currencies are only used inside their own countries. Although there are many players and currency pairs, a majority of the trades involve the G10 group of currencies, owing to the large influence of the countries and common occurrence in financial transactions. The Japanese yen comes in third of the most traded currencies on earth. The 2019 share for the yen was 17 percent which was down 5 percentage points from the 22 percent total in 2016. The 2019 level marks the lowest level of currency trading transactions in the history of the report going back to 1989.

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The former currency was pegged to the British pound, and the country switched to the Australian dollar in 1966. Because of its high value and stability, it is now the fifth most popular banknote to exchange. The value of the AUD made it a target for counterfeiters, so the Australian government designed notes made of polymer in 1988 to reduce the likelihood of counterfeit production. Canada is one of Great Britain’s commonwealth countries, but it stopped using the British pound in 1817. This was a reaction to the strengthening ties with the United States and its growing economic power.

The value of the euro is largely influenced by the political and economic developments in the eurozone. Relevant news data include; GDP news, unemployment data, interest rate announcements, bull flag formation trade agreements, government policies, etc. Some countries peg their currencies to the dollar, which counters the effects of exchange rate fluctuations and keeps them stable.

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Issued by the Bank of England, the Pound is an iconic currency that plays an integral part within London’s institutional forex trading Hub. Keep up to date with our news and analysis section of the website, which can provide insight and predictions into future movements in the forex market. The South Korean economy has grown during the turn of this century to become the fourth largest in Asia and the eleventh in the world as of November 2019.

Note that trading volume adds up to 200%, because each currency trade has a pairing. Hong Kong was once a colony of Great Britain, and its early currency systems are indicative of the former colony’s relationship to the UK. In 1863, the British Crown established a mint that would make money just for Hong Kong, but it minted coins that were unpopular with locals.

Some of this change could be attributed to the twenty small firms who participated in the 1992 survey but did not in the 1995 survey. If these firms are still actively trading, then dealers’ trades with these firms would appear in the “financial customers” category. These firms accounted for 7.5% of volume in the 1992 survey but probably a smaller share of turnover in 1995, if we infer from their dropping out of the survey that they were less active in the market.

As such, if the price of oil rises, it is likely that the value of the Canadian dollar will strengthen compared to the US dollar. The price displayed for a currency pair represents the amount of the quote currency you will need to spend in order to purchase one unit of the base currency. An exchange rate is the value of a nation’s currency in terms of the currency of another nation or economic zone. The Federal Reserve System is the central bank of the United States and provides the nation with a safe, flexible, and stable financial system. Keeping in touch with major currencies, the Canadian dollar , also called the loonie, tends to trade in similar daily ranges of 50 to 100 pips.

What are the 4 major trading currencies?

The major pairs are the four most heavily traded currency pairs in the forex (FX) market. The four major pairs at present are the EUR/USD, USD/JPY, GBP/USD, USD/CHF. These four major currency pairs are deliverable currencies and are part of the Group of Ten (G10) currency group.

Generally, USD/JPY has very high liquidity, however, JPY can also be viewed as a ‘safe haven’ currency during periods of global economic uncertainty. Some currency pairs are more liquid than others, which in theory makes them easier to trade. It also means that highly liquid instruments are generally more heavily traded. Below you will find information on the most popular currency pairs with the highest trading volumes. The “Major” Forex currency pairs are some of the most common currency combinations in the Forex market. Although there is no definitive list of what the “Majors” are, any list will certainly include the four traditional “Majors, which are EUR/USD, USD/JPY, GBP/USD and USD/CHF.

The Biggest Industries In The United States

The Canadian Dollar is closely correlated with the US Dollar, by virtue of the fact that their economies are very closely tied to each other as neighbours. Some of Canada’s biggest are oil and timber, with one of the main factors influencing the Canadian Dollar’s value is the oil price. While more than half of turnover volume was transacted in the morning, the percentage of volume traded in the afternoon has grown. Cross-border transactions accounted for more than half of total turnover, with transactions between a dealer located in the U.S. and a counterparty abroad accounting for 58% of total turnover.

In a similar fashion, the Reserve Bank of New Zealand looks to promote inflation targeting, hoping to maintain a foundation for prices. With an inflationary benchmark of 2%, the BoC has tended to remain a shade more hawkish rather than accommodative when it comes to any deviations in prices. As a result, the currency can be seen as most volatile through both London and U.S. sessions, with minimal movements during Asian hours (8 p.m. to 4 a.m. EST).

most traded currencies

The monetary policy of the country allows for the export and import of dinars, or the convergence thereof to other currencies, allowing the dinar to be one of the highest traded currencies. The forex market is larger than all of the world’s stock markets combined and is open round the clock for 5 days a week, offering numerous s opportunities for forex traders and enthusiasts. Federal Reserve and is the leader in the foreign exchange market, with more than 80% of all currency transactions involving the dollar. The ten most heavily traded currencies are also known as the G10 currencies.

The British Pound GBP

USD/JPY is the abbreviation used to denote the currency exchange rate for the U.S. dollar and Japanese yen. A central bank conducts a nation’s monetary policy and oversees its money supply. Both currencies have been the focus of carry traders, as the Australian and New Zealand dollars offer the highest yields of the seven major currencies available on most platforms. It governs monetary policy as well as currency issuance, money market operations, and data/economic analysis.

The term Kiwi is in reference to the small, flightless, native bird in New Zealand, called the Kiwi bird. Outside of the four main currency pairs, many consider these three to be additional major trades. At times, any of these pairs might actually be greater in volume traded than the four majors above.

The U S. Dollar

The United States has the largest economy globally, and the US dollar is the most traded currency. It comprises major forex pairs and accounts for a significant number of foreign exchange transactions expected on forex brokers like Oanda. The dollar is sometimes regarded as the global reserve currency because it is held by nearly every central bank and institutional investment entity in the world. Their volatility is consequently lower, since – given the large number of traders involved – the consensus on a given price is much stronger and harder to disrupt.

What are the 5 most used currencies in the world?

  • #1 – US Dollar (USD)
  • #2- Euro [1 EUR = 1.17 USD]
  • #3- Japanese Yen [1 JPY = 0.0095 USD]
  • #4 – Pound Sterling [1 GBP = 1.29 USD]
  • #5 – Australian Dollar [1 AUD = 0.71 USD]
  • #6 – Canadian Dollar [1 CAD = 0.76 USD]
  • #7 – Swiss Franc [1 CHF = 1.09 USD]

Stay on top of upcoming market-moving events with our customisable economic calendar. Discover the range of markets you can spread bet on – and learn how they work – with IG Academy’s online course. JPY is the currency abbreviation or the currency symbol for the Japanese yen , the currency of Japan. Interestingly enough, the South African Reserve Bank remains a wholly-owned private entity with more than 800 shareholders who are regulated by owning less than 1% of the total number ofoutstanding shares.

This is because EUR and GBP have had a historical link given the proximity of the UK to Europe and the subsequent strong trade ties between these two economies. The protests began a month or so before the data was collected, and so it is likely that they had an effect on the trading volume of USD/HKD. The yuan has largely been decreasing relative to the US dollar since the start of the US-China trade war. On the world market would likely cause a reciprocal slump in the value of the Australian dollar. In the case of the AUD/USD currency pair, this means the US dollar would become stronger, so it would cost fewer US dollars to buy one Australian dollar.


Among the top ten dealers, only four dealers’ ranking remained unchanged between 1992 and 1995. Among the dealers who were in the top ten in either 1992 or 1995, four dealers saw their ranking fall by five or more places, while four dealers saw their ranking rise by five places or more. For this reason, traders are confident in its economy, and the Yen is seen as a safe haven in times ofhigh volatility and uncertainty.

most traded currencies

Much in the same way as the previously mentioned currency pairs, the AUD/USD exchange rate is also affected by the interest rate differential between the Reserve Bank of Australia and the US Federal Reserve. For example, if American interest rates are low, USD would probably weaken against AUD and it would cost more US dollars to buy one Australian dollar. Just like the first two most popular currency pairs on this list, the quote price of GBP/USD is affected by the respective interest rates set by the Bank of England and the Fed.

These countries include Ecuador, Panama and El Salvador, among others. Was an official member of the European Union, the country never adopted the euro as its official currency for a variety of reasons, namely historic pride in the pound and maintaining control of domestic interest rates. The official currency of the majority of the nations within the eurozone, the euro was introduced to the world markets on Jan. 1, 1999, with banknotes and coinage entering circulation three years later. The euro has become the second most traded currency behind the U.S. dollar. Forex is the largest and most liquid market, with trillions of dollars traded between millions of parties around the globe each day. Acting independently, Canada’s central bank draws similarities with the Swiss National Bank because it is sometimes treated as a corporation, with the minister of finance directly holding shares.

The pound sterling GBP

The percentage of volume traded in the afternoon (12pm – 4pm) has grown (to 34% from 29% in 1992). Most trading still occurs in the morning, however, with almost twice as much volume in the morning than the afternoon (58% between 8am and 12pm, and 34% between 12pm and 4pm). This method focuses on the rate differential between the 2 currencies with the aim of making profits based on said difference, as opposed to trying to get the best entry and exit points possible. It’s a trustworthy, stable, and reliable currency, which makes it the most used in international transactions.

A global currency is one that is accepted for trade throughout the world. Some of the world’s currencies are accepted for most international transactions. The Australian dollar is one of the most-traded currencies in the world. The AUD/USD currency pair is highly liquid and volatile, thanks to the large number of traders uralkaliy who exchange the currencies that comprise it. The Japanese yen is the official currency of Japan and remains the most traded Asian currency. Japan’s economy is largely driven by exports and the bank of Japan constantly makes economic policies and regulations to keep the Japanese exports highly competitive globally.

The U.S. dollar is the home denomination of the world’s largest economy, sometimes referred to as the greenback. Therefore each trade is counted twice, once under the sold currency ($) and once under the bought currency (€). The percentages above are the percent of trades involving that currency regardless of whether it is bought or sold, e.g. the U.S. Dollar is bought or sold in 88% of all trades, whereas the Euro is bought or sold 32% of the time.

The Swiss Franc is also known in the currency trading world as the Swissie and the currency code, CHF comes from the old Latin name for Switzerland, Confoederatio Helvetica with the F standing for Franc. Switzerland is one of Europe’s most productive and stable economies, with the Swiss Franc, also backed up by large gold reserves. The Swiss have resisted converting to the Euro, or even joining the EU. The stability of the Swiss Franc is one of the reasons, alongside its traditional neutral positive with respect to global conflicts, that makes the Swiss Franc another safe haven currency.