The foreign exchange market is commonly called the FOREX market. The FOREX market is not a physical place with a central headquarters; rather, it is an electronically-linked worldwide network of currency traders dispersed throughout the leading financial centers of the world.

The FOREX market is a 24-hour market that does not depend on certain business hours of foreign exchanges; trade takes place among banks located in different corners of the globe. Exchange rates are so flexible that significant changes happen quite frequently, which enables to make several transactions every day. It is not without reason that the pivotal banks buy expensive electronic equipment and maintain the staffs of hundreds of traders operating in different sectors of the FOREX market.

In the financial arena, the seven industrial nations of the world are called the G-7 nations. They include Germany, Japan, France, England, United States, Italy, and Canada.

The financial leaders of these countries meet periodically to discuss world financial policy. The outcome of these meetings often dictates currency fluctuations for the following months. The four “major currencies”, along with the U.S. dollar, that dominate trading on the FOREX market by nature of their popularity and activity are the Euro Dollar, Japanese yen, British pound and Swiss franc.

The other tradable hard currencies include the Canadian, Australian and New Zealand dollars. They are often referred to as “minor currencies”.

Together, the four majors and all minors comprise the group known as “hard currencies”. Many traders focus their attention on six currencies; Euro Currency, Japanese Yen, British Pound, Swiss Franc, Australian Dollar and Canadian dollar.

• US Dollar (USD)
• Euro Currency (EUR)
• Japanese Yen (JPY)
• Swiss Franc (CHF)
• British Pound (GBP)
• Canadian Dollar (CAD)
• Australian (AUD)
• New Zealand (NZD)
• Mexican Peso (MXN)
• Brazilian (BRL)
• South African Rand (SAR)

Currencies are quoted in terms of "Value in Dollars". The strength or weakness of the U.S. dollar is mainly attributed to the United States government's fiscal policy.

The U.S. dollar is generally weaker when policies result in large budget deficits and stronger when there is surplus. Due to the political and economic climates of other countries the U.S. dollar can maintain its strength even in the wake of budget deficits.

The U.S. Dollar Index® is computed using a trade-weighted geometric average of six currencies. The six currencies are:

• Euro Currency (EUR)
• Japanese Yen (JPY)
• Swiss Franc (CHF)
• British Pound (GBP)
• Canadian Dollar (CAD)
• Sweden Krona (SEK)

European Monetary Union (EMU), planned unification of currencies of the members of the European Union (EU) under a central bank. The EU's goal was to fix monetary exchange rates at the beginning of 1999 and replace national currencies such as French francs, German marks, or British pounds with the single currency known as the Euro no later than 2002. This union of currencies would be backed by a higher value of goods and services than the U.S. Dollar. For that reason it is debated, “Could the Euro overtake the dollar as the world benchmark for world trade?” Biotechnology will be a pivotal technology in the 21st century for Germany with its enormous potential for developing effective weapons against cancer and other major illnesses.

Although it has a much smaller international presence than the U.S. dollar and the Euro Dollar. The yen is very liquid around the world. Many speculators enjoy trading yen due to its’ enormous volatility.

Switzerland, the "Garden of Europe", has a highly developed industrialized economy and one of the highest standards of living in the world.

In the area of investment, Switzerland is one of the United States most important partners.

Following the industrial revolution in the 19th century, the United Kingdom developed into the world's leading industrial and trading nation. During this time, the country became urbanized and today more than 70% of the total population occupies only 10% of the total land area.

The market in the United Kingdom is based on a commitment to the principles of free enterprise and open competition. International trade is vital to its economy. The absence of major trade barriers and the relative ease of doing business ensure that the United Kingdom remains an attractive marketplace.

Canada is the most trade-oriented of all G-7 countries. Canada's prosperity and its ability to create jobs are directly linked to how well Canada capitalizes on international opportunities.

Canada's economy is in better shape than it has been for years. Growth is accelerating, and inflation and interest rates remain low.

Australia has a prosperous economy, In recent years, the economy in Australia has expanded at reasonably steady rates.

Consequently, a stronger Japanese yen will purchase more Australian goods, thereby, strengthening the Australian economy.

The New Zealand dollar, abbreviated NZD or NZ$ and often informally known as the Kiwi dollar, is the official currency of New Zealand and the Cook Islands. It was introduced in 1967 to replace the New Zealand pound, when the country decimalised its currency.

The NZD, like the US Dollar, is made up of 100 cents. Currency is available as both notes and coins. Since 1999, New Zealand notes have been printed on a plastic polymer instead of conventional paper. There was a slight controversy, but this move was mostly met with curiosity by the public. Such polymer notes have many advantages, notably a photocopy can effortlessly be distinguished from the real thing by touch, and many Kiwis have been thankful they can go though a washing machine with no ill effects.

Mexico is the northernmost country of Latin America. It lies just south of the United States. The Rio Grande forms about two-thirds of the boundary between Mexico and the United States. Among all the countries of the Western Hemisphere, only the United States and Brazil have more people than Mexico. Mexico City is the capital and largest city of Mexico. It also is one of the world's largest metropolitan areas in population.

In the 1970's, Mexico became a major exporter of oil to the United States. Income from oil production, which is controlled by the government, spurred the development of manufacturing and service industries. During the middle and late 1970's, the price of oil was high. Mexico used its expected income from oil production as collateral to borrow money for many construction projects. But in the early 1980's, the price of oil fell. Mexico found it difficult to repay its loans, and spending had to be severely cut. The economy declined, and many Mexicans lost their jobs.

In the late 1980's and early 1990's, the economy improved because the government attracted foreign investment and controlled inflation. Since the mid-1990's, however, the Mexican economy has generally struggled.

The Peso is the currency of Mexico. In the 20th century it was often divided into 100 centavos. It was originally based on the Spanish silver Dollar. The administration of President Ernesto Zedillo Ponce de León continued a policy of privatizing and expanding competition in sea ports, railroads, telecommunications, electricity, natural gas distribution, and airports which was initiated by his predecessors Miguel de la Madrid and Carlos Salinas de Gortari.

The Real (plural reais) is the monetary unit of Brazil. It was implemented in 1994, after a period of high inflation. It is a highly diversified economy with wide variations in levels of development. Most large industry is concentrated in the south and southeast. The northeast is traditionally the poorest part of Brazil, but it is beginning to attract new investment.
Brazil embarked on a successful economic stabilization program, the Real Plan (named for the new currency, the real; plural: reais) in July 1994. Brazil successfully shifted from an essentially, fixed exchange rate regime to a floating regime in January 1999.Brazil has one of the most advanced industrial sectors in Latin America

South Africa is one of the oldest nation-states in Africa. The territory was originally colonized by the British, which brought waves of white settlers. Feuds with Dutch settlers prompted the Boer war. In 1910 the four main Dutch and English colonies in the region united as the Union of South Africa. In 1931 South Africa became a fully sovereign and self-governing dominion under the British crown. In 1961 it became a republic. The first banknotes bore the image of Jan van Riebeeck the first Dutch administrator of Cape Town. In the 1980s, the notes were redesigned with images of indigenous big game animals, such as the rhinoceros, lion, leopard, buffalo, elephant, etc.

South Africa is a country at the southern tip of the continent of Africa. The country has a wealth of natural resources, especially minerals, and it is the most highly industrialized country in Africa. South Africa also has great geographical variety and natural beauty.