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Even in a recession currency trading will be as brisk as ever. The only thing that can change is the currencies that are proving to be the most popular ones to trade with. A lot can be learned from how traders are reacting to the current market. For example a simple switch from one popular trade to another can cause big differences in the exchange rates, as well as the overall feeling of how the course of the recession is progressing.

Everyone is well aware of how long and how deep the current recession has been. And there is no real end in sight to it just yet either. But it would appear that the exchange rates currently in place in the currency markets are not helping matters either.

The recent six monthly report published by the International Monetary Fund has pointed out a big danger which may loom at the end of this recession. No matter how much or little you read of the papers, you will be aware that this recession was primarily triggered by the subprime market in the US. And once the first problem came to light – the failure of the lenders who issued the mortgages in the first place – they started toppling like dominoes.

As the situation stands at the moment, there are a handful of world currencies that are having a tough time on the currency markets. This has happened for different reasons, but clearly some are having an easier time of it than others.

The world’s top currency – the reserve currency and the one that seems almost impervious to whatever is happening in the currency markets – is the US dollar. But just as many other lesser currencies around the world have struggled in the recession, so has the mighty dollar.