For many novice Forex traders, it becomes hard for them to choose the right currency to master and trade in.

Not all currencies in the world have what it takes to give you juicy trading opportunities.

Where alternative forums of investment dole out rocky returns, many professional traders turn to trade in currencies and benefit from the dynamics at work therein.

Here is a review of the top three currencies in the forex market:

1. US Dollar

The US dollar represents the world’s largest economy, and at the same time, the world’s most troubled economy these days.

The currency draws its support from economic activity within the US. Apart from those fundamentals at work, the currency is also considered a global currency.

Since the end of World War II and pegging of US Dollar with gold, it has always served as leading currency of international trade. Therefore, upheavals in international trade also affect it.

The body responsible to manage US Dollar affairs is known as Federal Reserve Board, formed under Federal Reserve Act 1913.

The US Dollar is the most active currency and can offer you with many pips daily if you predict it right.

2. EURO

When EURO was launched, it was thought that global hegemony of US Dollar in international trade is about to end. Some commentators named EURO, the nemesis of US Dollar.

However, it has turned out to be farfetched. Although the currency represents some of the mightiest economies in the world, which used to be next to US, such as Britain, France and Germany, the currency is facing dark times.

This is mainly due to crises in lesser economies of Spain, Greece and Italy. The European Central Bank manages the currency, which really just have enough jurisdictions on the paper currency’s flow and general economic policies within the EU.

EURO is considered a sluggish currency compared to US Dollar, but it does offer sure signals for you to trade 30-40 pips a day.

3. Japanese Yen

Japanese Yen used to be the currency of the second largest economy of the world, until China took that away from it. The Bank of Japan (BOJ), founded in 1882, governs the major issues of the currency.

This includes money market functions, issuance of currency and economic data analysis. Because of trade necessities, the Japanese Yen is pegged at very low levels against world’s other currencies. This helps it in promoting its export-based economy.

Moreover, the Japanese Yen used to be a great carry trade currency, because of its 0% interest rate. However, this has changed as world economic crises pushed the other major currencies to also adopt near 0% interest rates.

The carry trade status of Japanese Yen makes it an erratic asset. When the markets are volatile, you can eye 150 to 170 pips in a day. On average, however you should expect 30-40 pips a day.

These are still the three biggest trading currencies from yesteryears. The pairs made with these currencies often provide traders with great trading opportunities.

You can consider them classic assets to trade with because technical tools work greatly on them.

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