Let’s have a look at the most popular currency combinations in the forex market and why you should trade them. The major currency pairs are the most common and popular currencies that people trade.
These major currency pairs include:
The most traded currency pairs account for more than 90% of all trades in major markets such as London and New York City. Here we will discuss what each major currency pair is made up of, how they work together to create a market, and which ones should be your top priorities when trading forex.
EURUSD is one of the most popular currency pairs in trading. You can trade it because there are high volumes every day, which means more people trade it and that makes their investments profitable too!
It has an appealing appearance for beginners as well as experienced traders. You will find plenty of economic data available about this market along with wide-ranging participants who want to invest any way they see fit based on those two factors: volatility and liquidity.
What I personally like about EURUSD is the very tight pricing for euro to USD, which means again lower costs for traders.
At a time when many markets are seeing decreasing volume, the EURUSD pair is enjoying its greatest trading days.
Traders have been drawn to this foreign exchange due in part to history and also because there’s plenty of liquidity available here on both long-term charts as well as day traders looking for quick profits or those just getting started with forex investing.
The high-frequency activity that occurs across all these different price levels means you’re never too far from finding something new happening–potentially some great investment opportunities waiting around every corner!
The GBPUSD pair is one of the best pairs to trade with technical analysis. When it comes down to reliability, most traders prefer this method because they can rely on key indicators and correlations for success in their trading strategies.
What I personally like about GBPUSD is that it has a straight and robust movement. GBPUSD has a higher volatility than most other currency pairs.
The USDJPY pair is a popular currency for trading among traders around the world. As there are many orders on both sides, this means that you can find low bid-ask spreads when buying or selling US dollars compared to other Forex pairs.
Many ECN brokers offer quotes in just fractions of PIPs which makes them more convenient than ever!
Another benefit, in my opinion, of trading USDJPY is the abundance of technical and fundamental analysis available on the pair, and that’s why I like to trade it.
AUDUSD is one of the few “commodity currencies” that has maintained stability in times when other economies are faltering. The country’s strong export trade makes it highly dependent on exports, but this doesn’t seem to have affected its reputation for relative calmness among traders around the world who continue investing money into AUDUSD trades despite being so exposed financially as well.
This pair is heavily dependent on exports from commodities like iron or gold which have seen some downturns over time but still remain an important part of how Australia operates today.
With economic uncertainty, the price of a commodity will typically drop and put pressure on Australia’s currency. This makes investors seek out safe havens like US dollars which can strengthen their own economy by making them more confident in investing there- this is why it tends to be more consistent trading activity throughout each day when trading AUDUSD pairs!
NZDUSD is a great currency for trading because of its stability and strength against the US dollar.
This pair is primarily influenced by the trade of New Zealand’s export products, which means that an increase in their prices will have a significant effect on our economy. When commodity markets go up, more money comes into this country because it costs less to buy things made here- so people get paid even better!
New Zealand is a country with many natural resources, and it exports agricultural produce. NZDUSD can be considered less risky than other forex pairs because of this stability in trade relations to countries such as China or India for example which have higher inflation rates on their goods due to lower costs from having cheaper wages/costs overall when compared against Western European-based economies like France (for example).
Oftentimes, investors look abroad to invest their money due to uncertainty at home–but this doesn’t mean those countries can offer market returns as high or higher than America’s economy!–and that makes sense considering our nation has been seen time after time as “the safe haven.”
I found greater success trading NZDUSD because it offers a lot of potential for currency traders. I trade NZDUSD because it is a great way to trade the fluctuating currencies of New Zealand.
This was a quick introduction to the most traded currency pairs, and I hope you see the potential! Which is your favorite currency pair to trade?