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The forex market is the most valuable market in the world and while a significant amount of the total trade volume is always on the major currency pairs, traders are increasingly looking to alternatives.

Forex professionals usually recommend that beginners start off their forex trading career by trading the major currencies.

The UK pound has been dogged by months of uncertainty surrounding the UK economy, with the new coalition’s policies on cutting public sector expenditure coming under intense scrutiny. The eurozone has just come through one of its sternest tests of resolve in its short history with the debt crisis in Greece being the most high profile concern.

Over in the US the dollar has been under pressure thanks to recent negative economic data, notably weak non-farm payroll figures, the occurrence of which have snowballed in recent weeks and re-ignited fears of a double-dip recession..

In uncertain times forex traders will look toward a major currency pair which is enjoying the most stable relationship. The continuing strength of the yen against the dollar has provided a welcome retreat for wary forex traders.

One of the reasons the yen is attractive to traders at the moment is because Japanese interest rates are extremely low (close to zero) and investors are taking advantage by borrowing an amount of yen and then using it to buy financial products with a higher interest yield, this is called a carry trade.

Depending on the leverage used, profits can be substantial – any fear of a change in the exchange rate can then be hedged.

Traders are also looking for alternatives beyond the majors. According to the Commodities Futures Trading Commission positions on the Mexican peso, Polish zloty and the Canadian dollar have all increased in volume over the last few months.

To find out more about how to take a position on the world’s forex markets by CFD trading and more about forex pairs, major and minor, visit www.igmarkets.co.uk.