Open a Forex demo account Specific Major Currency Pairs DescribedĮach currency pair has its own characteristics and behaves as a unique trading instrument. Dollar acts as the counter currency such as EUR/USD, GBP/USD, AUD/USD and NZD/USD use the country’s home currency as the pricing currency, and so quotations in these pairs are sometimes referred to as indirect rates. These quotations are sometimes referred to as direct rates since the country’s home currency is used as the pricing currency.įurthermore, currency pairs where the U.S. Dollar as the base currency, such as USD/JPY, USD/CAD and USD/CHF. Some major currency pairs and just about all minor currency pairs are quoted with the U.S. The Dollar continues being important, with over 86% of all forex trades still involving the currency. Dollar has historically been the most traded currency in its role as the world’s primary reserve currency. Dollar: NZD/USDĪs mentioned above, the U.S. Dollar versus the Canadian Dollar: USD/CAD These include the following pairs ordered by trading volume: The seven most actively traded currency pairs currently trading in the foreign exchange market, also known as the Majors all trade against the U.S. Major Currency Pairs All Quoted Against The U.S. Switzerland also eventually stopped the convertibility to gold of the Swiss Franc in 2000. President Richard Nixon unilaterally stopped the Dollar’s convertibility to gold, virtually all nations with the exception of Switzerland went off this de facto gold standard. Dollar, which at that time was still on the gold standard, and fixed the price of gold at $35 per ounce.Īfter 1971, when U.S. When implemented post war, this Bretton Woods system of fixed exchange rates pegged major world currencies to the U.S. Dollar to be chosen as the world’s reserve currency at the Bretton Woods conference held in New Hampshire in 1944, just before the end of the war.

Despite proposals for the creation of a neutral global reserve currency called the bancor, pressures prevailed for the U.S.

Colombain currency compare to us dollar