Top 10 best Currency pairs

Currency Pairs Forex

In trading there isn’t actually a single best currency pair to trade on, a good trader can make money trading any currency pairs given sufficient time and research. If there was such a things as the “best” currency pair to trade on then it would be the currency pair you are most comfortable and familiar with. That being said we realize that you are out here to make sure you optimize your trading plan and get started on the right track as much as possible and bulletproof forex will set you up on the right track.

While there may not be a single best currency pair to trade there are some popular ones that people like to trade on. And there are certain benefits to following the pack because 1.) there will be an active and established community to discuss trading with 2.) there will be countless published articles and news surrounding the most popular currency pairs making your research process a lot easier and 3.) there are trading tools which are only available for the most popular currency pairs.

What bulletproofforex will try to do for you in this article is try to describe certain behaviour patterns of this currency pairs, certain traits that may stand out that may repel or appeal to you. You then decide which one is best suited for your trading.

1. EUR/ USD

– represents two of the worlds largest economies European single market and the USA
– most traded currency pair on the market, making up of 24% of the daily forex trades in 2019
– has a lot of liquidity
– tight spreads
– large trades can be made without affecting the market
– Central banks: European Central Bank (ECB) and the US Federal Reserve (Fed)

2. USD/ JPY ("the Gopher")

– The JPY yen is the most traded currency in Asia, while the US dollar is the most traded currency in the world
– second most traded currency pair, making up 13.2% of all daily forex trades in 2019
– High liquidity
– Central Banks: Bank of Japan (BoJ) and the US Federal Reserve

3. GBP/ USD ("the Cable")

– the British pound and the US Dollar
– makes up 9.6% of all daily forex transactions
– Bank of England (BoE) and the US Federal Reserve (Fed)

4. AUD/ USD ("the Aussie")

– the Australian dollar and the US dollar
– makes up 5.4% of the dailt forex trades in 2019
– the Australian dollar is closely related to its exports, metals and minerals,  namely iron ore and coal.
– Central banks: Reserve Bank of Australia (RBA) and the US Federal Reserve (Fed)

5. USD/ CAD ("the Loonie")

– The Canadian dollar and the US dollar
– makes up 4.4% of daily forex trades.
– Canadian dollar is linked to their main export: oil
– Bank of Canada (Boc) and the US Federal Reserve (Fed)

6. USD/ CNY

– the Chinese renminbi (or simply known as Chinese yuan) and the US dollar
– makes up 4.1% of daily forex trades
– The Chinese yuan has been decreasing relative to the US dollar since the start of the US-China Trade War. Largely in part of the Chinese government allowing the Chinese yuan to depreciate in the knowledge that it will make China’s exports cheaper
– You can trade the USD/ CNH pair in the global market, as USD/ CNY is only available in mainland China
– Traders should take note of the ongoing US-China trade war as any activity is likely to affect the price of the currency pair
– Central Banks: People’s Bank of China (PBoC) and the US Federal Reserve (Fed)

7. USD/ CHF ("the Swissie")

– the US dollar and the Swiss franc
– popular due to the Swiss financial system which is well known to be a financial safe haven for investors and their capital
– often preferred by traders during times of market volatility
– Central banks: Swiss National Bank (SNB) and the US Federal Reserve (Fed)

8. USD/ HKD

– the Hong Kong dollar and the US dollar
– makes up 3.3% of daily forex activities
– this pair has been increasing in trading volume over the last few years due to the protests in Hong Kong due to the attempted implementation of the Fugitive Offenders amendment bill, as well as allegations surrounding police brutality against the peope of Hong Kong
– Cental Banks: Hong Kong Monetary Authority (HKMA) and the US Federal Reserve (Fed)

9. EUR/ GBP

– the Euro and the British pound
– makes up 2.0% of daily forex trades in 2019
– often seen as one of the most difficult pair to make accurate price predictions for
– has been experiencing market fluctuations due to Brexit.
– Central banks: European Central Bank (ECB) and Bank of England (BoE)

10. USD/ KRW

– the US dollar and the South Korean won
– makes up 1.9% of daily forex transactions in 2019
– the South Korean economy has been experiencing impressive growth in the last few years, ranking 4th in Asian economies and 11th in the world
– Central banks: Bank of Korea (BOK) and US Federal Reserve (Fed)

In closing, there are a lot of factors that affect currency pairs from interest rates set by central banks, to political activities, and economic factors. You will find that each currency pair has its own set of unique circumstances, study and learn these specialties and you’ll be one step closer to becoming successful forex trader.

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