(Newswire.net — May 2, 2023) —
Several official currencies are used all over the world, but few of them are regularly traded in the forex market. Whether a novice or a seasoned trader, you frequently search for the most profitable currency pairs. But it may be challenging to know the currency pairs that are favorably connected to trade in the forex market due to the vast amount of available currencies. To simplify things, the Traders Union analyst recently listed the best Forex pairs to trade within the Forex market.
Please continue reading to learn more.
Top 6 most traded currency pairs by TU
The best forex pairs according to Traders Union experts are:
1. EUR/USD
The most popular currency pair is EUR/USD, which accounts for 24.0% of all forex trades made daily in 2019. The appeal of the EUR/USD pair is due to its representation of the two largest economies in the world: the US and the European Union.
The enormous daily volume of EUR/USD trades guarantees the pair’s high liquidity, often producing narrow spreads. For traders, liquidity and tight spreads are alluring because they allow for the execution of huge trades with little disruption to the market.
2. USD/JPY
The USD/JPY currency pair, also called “the gopher,” consists of the US dollar and the Japanese yen. With 13.2% of all daily forex transactions in 2019, it is the second-most traded forex pair on the market.
The US dollar is the world’s most widely traded currency, and the Japanese yen is Asia’s most widely traded currency. Like EUR/USD, USD/JPY is renowned for its high liquidity.
3. GBP/USD
The third most traded currency pair is the British pound to the US dollar. It accounts for 11% of trade volume. The term “the cable” is frequently used by traders and investors to refer to the currency pair. This term dates back to the 19th century when a submarine cable sent the exchange rate across the Atlantic.
4. AUD/USD
Since 1966, the Australian Dollar has served as the Australian Commonwealth’s official currency, consisting of Australia, seven dependent territories, and three nations. The Australian Dollar (AUD), which makes up 6% of trading volumes, is one of the world’s top five most traded currencies (behind the USD, EUR, JPY, and GBP). The Australian economy produces and exports several critical commodities, including iron ore, coal, petroleum gas, gold, and aluminum oxide. Because of this, the Australian Dollar is also known as the Canadian Dollar and a commodity currency.
5. USD/CAD
The USD/CAD pair is known colloquially as the ‘loonie’ after the loon bird that appears on Canadian dollar coins, and it reflects the pairing of the US dollar with the Canadian dollar. USD/CAD exchanges accounted for 4.4% of daily currency trades in 2019. Because oil is Canada’s principal export, the strength of the Canadian dollar is directly related to the price of oil.
Because oil is priced in US dollars on global markets, Canada can earn significant US dollars from oil exports. As a result, if the price of oil rises, the Canadian dollar will certainly strengthen against the US dollar.
6. USD/CHF
The currency symbol, CHF, is derived from Switzerland’s former Latin name, Confoederatio Helvetica, with the F standing for Franc. The Swiss Franc is often known as the “Swissie” in currency trading. The Swiss Franc is also backed by substantial gold reserves, making Switzerland’s economy one of Europe’s most affluent and safe.
Switzerland has been hesitant to embrace the Euro or join the EU. The Swiss Franc’s historical neutrality in international wars is one factor contributing to its status as a safe haven currency. Like the USD/CAD, the currency pair accounts for 5% of the trading volume.