Exploring Non-Dollar Currencies for Forex Trading 5.00 / 5 (100.00%) 1 vote

While it is important for adults to know how much their local currency trades against the dollar, what is more important is exploring non-dollar currencies for forex trading purposes. Other global currencies are equally as important in international trade as the US dollar, so it makes sense to learn more about these currencies. The following are some major global currencies that forex traders may want to learn more about.

1. The Euro

The Eurozone is the largest trading block in the world. Most of the countries in the Eurozone are the biggest manufacturers or electronics and automobiles in the globe. While local currencies are still in use, the euro is the official currency of the Eurozone. Since the zone is a major participant in the international trade, it makes sense that the euro is the second most traded currency in the world. Trading in the euro can give you great returns. Be sure to stay updated with news about the Eurozone to ensure that you make profitable trades consistently.

2. The Yen

Japans participation in international trade is well-known the world over. The country exports almost as much goods and services as it imports, meaning that the yen is very active in the currency market. For profitable trades, consider quoting the euro or dollar against the yen at any time. The JPY/USD and JPY/EUR quotes usually vary with every passing second by huge margins, so you can make quick profits by simply watching the prices go up and down. While speculation may lead to price fluctuations, the value of the yen fluctuates more rapidly and by huge margins due to the countrys activity in the international markets. Buying the yen will never disappoint you once you study its price movements.

3. The South African Rand

When trading in global currencies, you cannot ignore African currencies such as the South African Rand (ZAR). As Africas biggest economy, South Africa is blessed with a wealth of mineral resources, some of the best beaches and top-tier tourist attractions among other things. It is also a commercial and business hub. What this means is that a lot of foreign currencies get into SA, and the demand for the ZAR is also very high. Quoting any of the major currencies against the rand provides traders with the opportunity to make huge profits from a currency that some traders ignore.

4. The British Pound

The Queens Currency, as some people like to call it, is the fourth most traded currency in the world. Before the euro was introduced, it was the second most traded currency in the world. The Great Britain Pound (GBP) is still highly traded even with the euro as the official currency for the Eurozone. It is usually very stable, so traders can adopt it as their base currency. The United Kingdom is still an economic powerhouse and most of the worlds richest people live in London.

While trading the dollar against other currencies can provide decent returns, traders need to consider exploring non-dollar currencies for forex trading success.