Brokers provide dozens of different currency pairs, but the major currency pairs are still EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF and USD/CAD. About 85% of all trades with currency pairs are made with these pairs. The American dollar is involved in 85% of all transactions. In second place is the euro,with about 37% of the daily volume, and the Japanese yen has about 20%.
The most active country in the financial market is the United Kingdom, with a share of 34.1%. The second largest player in the market is the United States, with over 16%, and then Japan, with 7.6%.
We decided to find out your favorite pair and why? Describe the main advantages and disadvantages of your chosen currency pair. Why did you choose this pair? Are you using the correlation of currency pairs?
To help beginners, we created a short overview of the major currency pairs. Our opinion may not coincide with your personal opinion, so this review is rather arbitrary.
This is the most popular pair, but such a currency pair often behaves unpredictably and "swallows" deposits of numerous traders. Despite the sizable fluctuations, it’s better to trade with the trend.
EUR/USDwill be the best option for beginners.
USD/JPY is often called the most insidious currency pair. This currency pair may show jumps and declines. USD/JPYis sensitive to political events; it is often called the most sensitive. However, despite such shifts, USD/JPYprovides considerable profit.
This currency pair shows long-term movement in different directions, but, in general, the pair copies the driving dynamics of EUR/USD. In contrast toEUR/USD, USD/CHF better shows fluctuations of the dollar. Therefore, newcomers can use the USD/CHF pair to analyze the dynamics of other currencies.
This currency pair is distinguished by high dynamics. GBP/USD is famous for its false breakouts of support and resistance levels, which should be considered.
Newbies can use this currency pair but still should be careful. GBP/USD signals often come true, more than the prediction of the yen. The pair is very sensitive to British political data, so news of Britain should be accounted for.
This currency pair is quite sensitive to oil prices. With increases in oil prices, the value of the Canadian dollar also increases. Therefore, one who is going to trade this currency pair should explore trends in oil prices, but don’t forget about technical analysis. Predictions of this currency pair are most successful among American analysts.