The most popular forex currency pairs are known as the “major pairs.” These pairs involve the world’s most widely traded currencies and typically have the highest liquidity and trading volume. Here are the most popular forex currency pairs:
- EUR/USD (Euro/US Dollar): This pair involves the euro, the currency of the eurozone, and the US dollar. It’s the most traded currency pair in the forex market and often considered a benchmark for the strength of the US dollar.
- USD/JPY (US Dollar/Japanese Yen): This pair involves the US dollar and the Japanese yen. It’s often influenced by economic indicators from both the United States and Japan and can be impacted by risk sentiment in the markets.
- GBP/USD (British Pound/US Dollar): This pair involves the British pound and the US dollar. It’s influenced by economic data from the United Kingdom, as well as factors affecting the US dollar.
- USD/CHF (US Dollar/Swiss Franc): This pair involves the US dollar and the Swiss franc. The Swiss Franc is often considered a safe-haven currency, and this pair can be influenced by geopolitical and economic events.
- AUD/USD (Australian Dollar/US Dollar): This pair involves the Australian dollar and the US dollar. It’s influenced by commodities, especially those related to Australia’s economy, and economic data from both countries.
- USD/CAD (US Dollar/Canadian Dollar): This pair involves the US dollar and the Canadian dollar. It’s often influenced by oil prices due to Canada’s significant oil exports, as well as economic data from both countries.
- NZD/USD (New Zealand Dollar/US Dollar): This pair involves the New Zealand dollar and the US dollar. It’s influenced by economic data from New Zealand, as well as global risk sentiment.
These pairs are considered the major currency pairs and are commonly traded by forex traders around the world. There are also “minor pairs” and “exotic pairs,” which involve currencies from smaller economies or emerging markets. However, these pairs tend to have lower liquidity and trading volume compared to the major pairs.
Remember that forex trading involves significant risk, and prices can be influenced by a wide range of economic, political, and geopolitical factors. If you’re considering forex trading, it’s important to educate yourself about the market, understand the risks involved, and consider seeking advice from experienced traders or financial professionals.