The US Dollar is the world’s reserve currency and while that is unlikely to change over the next decade, forex traders should be prepared for an outflow of assets. Global central banks are due to shift $500 billion worth of reserve assets from the US Dollar into the Euro. This is only a small percentage from the global reserve pool which is estimated at $11.3 trillion.

Given that the United States economy is far and away the largest single economy in the world (close to three times the size of second place China), it is not surprising that the U.S. dollar holds the position that it does. The United States dollar is by far the most significant currency in the global market; it is the dominant reserve currency of the world, it represents nearly half of the trading volume of the major currencies, and it is the default currency for most transactions.