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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 most suitable currency pairs for trading are the Major Forex Pairs, as these constitute the most frequently exchanged currencies in the global 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

The United States Dollar, or USD, functions as the world's principal currency. It serves as the benchmark against which all other foreign exchange currencies traded in the market are generally valued. Most other currencies are, in essence, quoted in relation to the USA dollar.

The US dollar is considered a safe currency because many central banks keep it as a reserve. When the economy is struggling, the dollar's value increases because traders and investors purchase it as a safe investment. However, when the economy is strong, people prefer currencies with higher returns, like the EURO, Pound, Swiss Franc, and Australian Dollar.

In the market, the dollar is traded against other important forex currencies, such as the 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.

The Japanese Yen, or JPY, holds the position as the third most frequently exchanged currency globally, largely due to its high liquidity. Japan's economy ranks as the second largest following that of the United States.

The British Pound or GBP represents the currency of an economy that ranks third globally after the United States and Japan. As a highly liquid currency, it holds the position as the fourth most traded in the global market.

The Swiss Franc or CHF - The Swiss Franc is unique among major European country currencies as it is not a member of the European Union or the G-7 nations. Despite the Swiss economy being relatively modest compared to other major economies, the Swiss Franc holds status as one of the five principal currencies in the Forex Trading Market. This is attributable to the robustness of the Swiss banking sector and the overall Swiss economy, which grants the Swiss Franc stability and maintains demand that consistently outstrips supply.

The Best Currency Pairs To Trade

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