Traditionally, there are four major pairs: EUR/USD, USD/JPY, GBP/USD and USD/CHF. These are currency pairs that include the American dollar, the currency behind the biggest economy in the world, and a huge superpower.
The Euro sure is a major currency - it’s used by 16 nations, including Germany and France, which are great economies. EUR/USD is the most popular pair in the world.
USD/JPY is also a very popular pair. Despite the long recession, Japan’s economy is still huge. The Yen’s popularity can be seen through the popularity of the EUR/JPY pair.
The British empire ceased to exist a long time ago, but the British Pound is very popular. With London being the place with the most forex transactions, and with the exciting nature of the cable, the British Pound still deserves to be one of the major currencies.
And what about the Swiss Franc? I find it quite boring. Switzerland doesn’t provide too many economic indicators. In addition, the Swiss Franc lost its status as the safe haven currency in the current economic crisis. The Dollar and the Yen are bought in times of trouble.
In Wikipedia’s table of most traded currencies, the Swiss Franc holds 6.8% of trade. The Australian dollar holds 6.7%. The research, made by the Bank for International Settlements, was made in December 2007, about a year ago.
Australia’s economy managed to avoid recession - only one quarter of contraction. It’s strong ties with China make it a very strong economy, with a very strong currency. Also the soaring price of gold helps the Aussie.
I’ve written here many times about the strength of the Australian economy. Regarding forex trading, I found the AUD/USD to be the most predictable currency pair.
So, I have a strong notion that the Australian dollar passed Swiss Franc in trade volume.
I’m waiting anxiously for a fresh release of forex volume trade, and I believe that it will put Australia in the major league, leaving the Swiss Franc out.
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