What Currency Pairs Move the Most? - The Most Liquid Currency Pairs
The currency pairs that move the most are the Forex Major Currency Pairs. These major currency pairs are the currencies that move the most in the forex market.
Major currency pairs are the currency pairs that are the most traded currency pairs by volume of trade transactions - these currency pairs are: EURUSD, USDJPY, GBPUSD & USDCHF.
Major currency pairs have a combination of the USD and one other major - EUR, JPY, GBP, CHF.
The Most Traded Currency Pairs in the World are the 4 major forex pairs are:
- EURUSD
- USDJPY
- GBPUSD
- USDCHF
Daily Turnover of Major Currency Pairs by Volumes
The USD is the most traded currency in the fx market, followed by EUR, GBP, JPY and CHF, the daily turnover volume share taken by each of these 5 currencies in terms of percent is illustrated below:
USD - 85%
EUR - 40%
JPY - 20%
GBP - 13 %
CHF - 9 %
Since Forex transactions are in pairs the total will be 200 %
For example the EURUSD pair: EURUSD = 100 % EUR + 100 % USD
Summing up the total of the big four major currency pairs = 85 + 40 + 20 + 13 + 9 = 167 % . Note these four forex pairs are made up of five individual currencies which make up the sum total of 167%.
- EURUSD
- USDJPY
- GBPUSD
- USDCHF
This percentage of the total trade transaction turnover volume is what makes these four major currency pairs to be referred to as major forex pairs or in short "majors".
This major volume of trade transactions of the total turnover daily volume is also what makes these 4 currency pairs the most traded currency pairs and the best currency pairs to trade especially among the Day Traders.
Therefore volume for the most traded currency pairs is:
Forex Major Currency Pairs = 167 % of all turnover
Other Currency Pairs Combined = 33 % of all turnover
Which are the Most Traded Currency Pairs in the World?
Best Currency Pairs to Trade: Because the major currency pairs are the most traded currency pairs, many experienced forex traders only trade the major currency pairs because these are highly liquid and their movement tends to be more predictable. This makes these major currencies; USD, EUR, GBP, JPY and CHF the best to analyze using analysis as they are the most liquid and the most traded currency pairs.
The more the liquidity, the more the volatility, volatility means a currency is likely to move in a trend in one particular direction & when the prices are moving in a particular direction it is easier to make money as opposed to when prices are not moving in a particular direction - ranging market.
On the other hand, all the other forex pairs, also known as minor currency pairs or currency crosses only make 33% of all daily trade transactions turnover & are said to be illiquid, meaning they don't have a lot of volatility & as such most of their price movements are choppy or range bound. These means that the minor currency pairs are the most hard to analyze using analysis studies because they do not show defined market trend movements in one particular direction (they don't move in a trend).
