Euro

Are some currencies better than others on the Forex?
Profits can be made from trading any currency in the Forex since most currencies move multiple times each day. Some currencies are more popular, however, because they have high demand and are being used by more banks and corporations around the world. As a result, the most traded ones exhibit the most movement and have the highest liquidity making it easy to buy and sell.

The US dollar is the dominant force in the Forex and is highly influenced by announcements from the US central bank called the Federal Reserve. The most traded currency pairs are usually the ones that involve the dollar which is also known as the greenback or the buck.

Following the dollar is the euro, which is the currency shared by 18 different countries in the European region called the eurozone. Although each country has its own bank, the eurozone has the European Central Bank as the primary institution.

Third largest is the Japanese yen which is governed by the Bank of Japan. A key trait of the yen is that it usually has a higher interest compared to other currencies which makes it a prime candidate for the carry trade or profiting through difference in interests.

After the yen is the British pound sterling under the Bank of England. Also known as the cable, it is most active when markets in the US and Europe are open.