Final answer:
Among the options provided, CAD/MXN (Canadian Dollar/Mexican Peso) is the currency pair not frequently traded in the global foreign exchange market. Popular currencies in forex include the U.S. dollar, euro, British pound, Australian dollar, and Japanese yen.
Step-by-step explanation:
The currency pair that is not frequently traded in the global foreign exchange market among the options provided is CAD/MXN (Canadian Dollar/Mexican Peso). According to the references provided, the most commonly traded currencies on foreign exchange markets are the U.S. dollar (USD), followed by the euro (EUR), the British pound (GBP), the Australian dollar (AUD), and the Japanese yen (JPY). These currencies are heavily traded because they represent some of the world's largest economies, which are deeply integrated into global trade and finance.
The foreign exchange market (forex) is a decentralized market where currencies are traded, with the USD being the most widely involved currency, appearing on one side of 88.3% of all transactions. The Euro, British pound, and Japanese yen are also among the most traded currencies, often paired with the USD, such as in the commonly traded pairs USD/EUR, USD/GBP, and USD/JPY. The CAD/MXN pair, while involving two significant North American economies, does not see as high a volume of trade on the foreign exchange markets as pairs that include the USD, EUR, GBP, or JPY. This is because the economic size and global financial involvement of Canada and Mexico are smaller compared to the economies represented by the other currencies listed.