The Best Currencies for Forex TradingOf course, there are some currencies on the Forex that tend to do better than the rest of the pack. One of the ways of making money through Forex trading is by knowing not only which currencies are strong in general but also which currencies are making slow, steady gains in value. It used to be that the dollar was one of the prime currencies on the Forex. Many people all over the world were looking to buy dollars with their own currency because dollars were going up in value so much. The current state of affairs for owners of the dollar is not so good. Americans living and working in Europe, but getting paid in American dollars now wish that their paychecks were
coming in in Euros. The Euro is now a real powerhouse in terms of the world market of currencies.
The Euro has done extremely well in the world market for many years, almost since the birth of the Euro. The initial countries of the Euro are mostly powerhouse countries, but the synergistic effect of all of these countries joining together has meant that none of their individual currencies were as strong as the Euro has become. Each currency was weaker on its own, for example the franc or the guilder. Now that the currencies have joined together, the Euro has really gained a lot of ground since the beginning. The Euro is definitely one of the currencies to watch on the Forex if youre looking to gain money with strong currencies.
Another powerhouse currency is the British Pound. Though a lot of countries criticized Great Britain for not joining in on the Euro, it has proven to be a wise financial decision on the part of Great Britain. The pound is one of the only currencies that can still compete with the Euro; the dollar tried to compete with the Euro for a long time, but the battle has more than effectively been lost. The dollar is now one of the laughingstocks on the Forex market, alongside the Japanese Yen.
Another good, though not so often mentioned, currency on the Forex is the Canadian Dollar. This dollar, once extremely weak beside the American Dollar, has gained more than significant ground in the last five years. The Canadian Dollar has gained significant strength in recent years, and has shown to be continuously on an upward trend. Even if the upward trend of the Canadian Dollar is not as significant as the upward trend of the Euro, it is steadily moving upward.
The other top currencies for trade in the Forex are the Japanese Yen and the Australian Dollar. Both of these currencies have quite a long history in the world of Forex, and the recent developments are not all good, especially where the yen is concerned, but these two currencies remain at the top of the Forex Trade.
The key to success on the Forex is to really know the trends in the market. Another thing to really watch if one is looking to succeed in the Forex is the trend of interest rates in a give country. Interest rates have proven to be very indicative of the value of the currency itself. If one is watching interest rates, then one is also watching currencies, indirectly of course, but watching nonetheless. A vigilant eye and a sense for patterns in the market will result in a powerhouse career or hobby for somebody in the Forex market. Theres a lot of success to be had if one is paying attention to the market and the trends.
