The forex market is a 24-hour market that lets you trade anytime you want. It has the biggest transaction volume and the most liquid financial market. However, with lots of currencies there are, which currency pairs are the best?
Major Currency Pairs
Luckily, traders only have to choose from a few currencies and currency pairs to trade. The most popular and the most traded currency in the world is the US dollar, which the world’s reserve currency.
Any pair that has the US dollar plus another major currency is considered to be a major pair. Here are the six major currency pairs in the market right now:
- EURUSD (Euro-US Dollar)
- USDJPY (US Dollar-Japanese Yen)
- GBPUSD (British Pound-US Dollar)
- AUDUSD (Australian Dollar-US Dollar)
- USDCHF (US Dollar-Swiss Franc)
- USDCAD (US Dollar-Canadian Dollar)
The values of these currency pairs keep moving in relation to each other, with the trade volumes from each country changing all the time.
But are they really the best pairs to trade? The answer is this: them being major currency pairs doesn’t guarantee that you can earn from trading them.
But they do provide the best trading conditions. One reason for that is that they have the narrowest spread.
Most Popular Major Pairs
Despite the pair above being the most popular, they can still be filtered and narrowed down into the three most popular major pairs in the forex market.
EURUSD
This is arguably the most popular pair among the group. It sports the lowest spread among forex brokers.
It is also associated with basic technical analysis. Another reason that traders love this pair is that it’s not too volatile, meaning you can select this are you best pair to trade if you don’t think you’re not in any position to take risks.
Also, researching is easy with this pair, as there are a lot of information available online with this pair.
GBPUSD
The popularity of this pair is mainly coming from profitable pips and possible large jumps in its exchange rate.
On the other hand, it’s worth remembering that higher profits come along with greater risks. That’s saying that the GBPUSD can be among the most volatile currency pairs in the world.
Even so, most traders still trade this currency pair nowadays, as they can easily find lots of information about it online. It’s very widely covered in media, too, as the Brexit dominates the headlines and the US dollar reacts to almost any world news.
USDJPY
Forex traders also love the USDJPY very much. It has a very low spread and you can typically track a smooth, obvious trend. That’s not usually found in many other currency pairs. It’s a carry trader’s favorite too, as the Japanese currency has very low interest rates.
The yen is also a safe-haven asset, which means its movements are relatively easier to predict. It often gains when there is high uncertainty in the markets.
Those three currency pairs are currently the forex traders’ favorite pairs to trade. They all provide huge chances of winning trades, as long as you do your homework and analyze their movements correctly.
