Forex trading has been overwhelmingly popular in recent times. We need to understand the popular and reliable currency pairs to trade upon so that we can kick start our career without at least suffering major setbacks. The liquidity determines the popularity of any currency pair and there are a lot of varieties we can choose from. But today we are talking about the best 5 currency pairs which are very famous and most frequently traded.
A currency pair determines the value of one currency against the other. There are base and quote currency. The major currency pairs have USD involved. The currency pair without any involvement of USD is called a cross pair. Let us check 5 most popular currency pairs for trading on exness:
EUR/USD
Also called the ‘Fiber’ which has Euro and the US Dollar are the two currencies in the pair. The most commonly traded currency pair is extensively popular among the traders who are a newbie as well as experienced. The economy of the two countries involved is huge and reputable. It has very low spreads and has high liquidity. The currency pair has the ability to get huge volumes of trading. In the market of Forex scalping, it can be considered as one of the best currency pairs. The market is excessively stable and very profitable. The volatility of currency pairs is quite less and hence is considered as one of the safe-haven assets for trading.
GBP/USD
GBP/USD involves the British Pound sterling and US Dollar. The pair is also known as the ‘Cable’. It is highly volatile and has major fluctuations in pricing, pip movements, and exchange rates. They are called the cable because they were the first pair of currency traded via cables or telephone lines across the Atlantic Ocean. The volatility of the market incurs huge profit margins and the day traders are more attracted by this currency pair. It is best for swing trading and is a strategy for short-term forex.
USD/JPY
Also known as the ‘Gopher’ and is a currency pair involving US Dollar and Japanese Yen. It is the second most common pair traded across the world. They have high liquidity and the Japanese Yen is considered a safe haven asset that has the least uncertainty and vulnerability over longer periods of time. There are lots of fluctuations and they are highly traded. It has the tightest spreads and the overall cost of the trade is reduced greatly.
AUD/USD
The AUD/USD is a currency pair that has the Australian Dollar and US Dollar involved. They are very popular across the country and Australia has high export valuation and exports commodities such as natural gas, iron ore, coal, etc. There is huge international demand for these commodities leading to the very strong and high liquidity of the currency pair AUD/USD. There are huge volatilities in the markets of AUD/USD and thus incurring huge profits from these pairs.
EUR/GBP
This currency pair is also known as the “Chunnel”. It involves Euro and Britain Pound Sterling and the name comes from the channel that connects both the countries. This is an extremely strong currency pair and is very closely located. They have grown a lot of volatility in recent years which experienced traders would love to trade. The rates of exchange rely upon changing rates of interest which corresponds to changing the strength of the currency one over the other.
There are a huge number of currency pairs available for the purpose of trading but there remain few of the currency pairs which are very popular and reliable for the purpose of trading. The strength of the currency generally depends on the economy of the corresponding country. The perfect currency pair corresponds to perfect trade. So, choose the best one for your trade today!
