trading currencies

In future conditions can be changed. so dont take this article crucial, it is just in accordance with present situation of forex market. Here is a brief personality of each currency and the advantages of trading it, based upon past performance:

British Pound
Thinner volume than the Euro or Japanese yen, means that short term trading should be done selectively, but this market is more suited to long term trend following. Thin volumes and low open interest can lead to exaggerated intraday moves and price spikes.

Euro
Any trader trading currencies should trade the euro. Good volume, high open interest and great long term trends, in addition good volatility is present for day traders and its recent status as a safe haven currency, means it is suitable for all traders.

Japanese Yen
The Yen offers fantastic long-term trends and offers some excellent volatility for day traders. Its slightly more erratic short-term price spikes than the euro, make it a currency that can produce more “false” signals than the euro, but generally, it is a great currency to trade. Like the euro volume and open interest is high.

Swiss Franc
In recent years the Swiss economy has become more integrated with Europe’s and the currency has a higher correlation to the euro, but it still represents a currency with great long term trends making it suitable for long term position traders. Like the British pound, volumes are not as high as the euro or yen and day trading conditions are not so good.

Australian Dollar
Quite thin volumes and large price spikes occur in Australian dollar, but it does offer good long-term trends and a diversification away from the major currencies.

Canadian Dollar
The Canadian Dollar is very similar to the Australian dollar. It offers good long-term trends and a diversification away from the major currencies; again, it is suitable for long-term trend followers and not day traders.