Understand the Forex Majors
The EUR/USD , USD/JPY, GBP/USD, USD/CHF, AUD/USD, NZD/USD. These 7 pairs are the most traded currencies in the world and are known as Forex Majors. This major currencies exist in the largest Foreign exchange markets like London, New York, Tokyo, Singapore, Frankfurt, Sydney and Hong Kong.
If you may pay a very close attention to this currencies you will notice that all the other currencies are paired with a USD. If it were in a community the other currencies would be community members contributing to the economy of the country while the USD play a king role. From a historical standpoint It is a notion that the Dollar is the king of currencies in the world and Dominates to all Forex Majors.
The USD is the United States of America Dollar, is paired with a Canadian Dollar from Canada, another country in the northern part of America. The (USD) is also paired with the (GBP) Great British Pound or the Sterling which is the official currency of the United Kingdom, the United kingdom consist of Wales, England, Scotland and Northern Ireland. The USD is paired with a Euro, The Euro is an official currency of the European union which is the Eurozone, it comprises the following states Belgium, Austria, Estonia, Cyprus, France, Finland, Greece, Germany, Malta,
Luxembourg, Netherland, Latvia, Italy, Slovenia, Spain and others. The USD is also paired with
(JPY) Japanese Yen which is an official currency of Japan and is the third most trade currency in the Foreign exchange market, it comes after the USD and the Euro. The
USD is also paired with NZD which is the official currency and legal tender of New Zealand and also paired with the Australian Dollar which is the official currency of Australia.