What are the Best Currency Pairs to Trade? - The Best Currency Pairs to Trade in Forex
What Are the Best Currency Pairs To Trade?
The best currency pairs to trade the Major Forex Pairs. These major currency pairs are the most traded currencies in the market.
Major Forex Pairs List - Best Currency Pairs to Trade
- EUR USD
- USD JPY
- GBPUSD
- USD/CHF
The USD is the most transacted pair
USD - 85 % of all daily market transactions
EUR - 40% of all daily market transactions
JPY - 20% of all daily market transactions
GBP - 13 % of all daily market transactions
CHF - 9 % of all daily market transactions
USA Dollar or USD - the United States dollar currency is the main currency of the world. It is used as the standard measure of all other forex currencies which are traded and transacted in the market. All others are in general quoted in terms of USA dollar.
The US dollar currency is a safe haven currency, because it's held as a reserve by many central banks. In the times of economic recession the dollar will strengthen due to the fact that traders & investors buy the dollar due to its safe haven status. On the other hand when the economies are doing well people will go for those that are higher yielding such as the EURO, Pound, Swiss Franc and Australian Dollar.
In the market the dollar is traded against other major currencies, these are Euro, Japanese Yen, British Pound and Swiss Franc.
Euro or EUR - Euro currency has got a strong international presence because it represents 17 Euro-zone member countries of the European Union. Because Euro currency represents 17 combined economies, this makes the Euro the second most transacted currency after the USA dollar.
Japanese Yen or JPY - Japanese Yen currency is the third most transacted currency in the world due to its liquidity. Japanese economy is the second biggest economy after the USA economy.
British Pound or GBP - Britain economy is the third biggest economy after the US & the Japanese Economy. This makes the British pound liquid and it is the fourth most transacted in the market.
Swiss Franc or CHF - Swiss Franc currency is the only major of a major European country that doesn't belong to the European Union or G-7 countries. Although the Swiss economy is relatively small compared to other major economies, the Swiss Franc is one of the 5 major currencies on the Currency Trading Market. This is due to the strength of the Swiss banking system and the Swiss economy which makes the Swiss Franc stable with a high demand that exceeds supply.
The Best Currency Pairs To Trade
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