Wednesday, 18 May 2016

Major Currency Pairs in Foreign Exchange Trading

Photo Credits: Shishko, washingtonydc, Teddy James and Timo Heuer (upim)
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Hello everyone. Hope you all will be fine; I am Sanaullah Baloch, the writer of this blog.

So today we are going to discuss about the major or primary currency pairs in Forex market, I hope you will enjoy reading this article J. There are Six Major Currencies in Foreign Exchange Market. Major Currencies are based on USD (United States Dollar).
For your kind information, all the currencies in the Forex market have its own code for the recognition and if we make a set of two currencies, we call it pair and every pair has its own exchange rate depending upon the value of the currencies.

1- EUR/USD


The EUR/USD is one of the major currencies having the largest number of traders. Most of the traders like to do trading on EUR/USD because the spread of this currency pair is less as compared to other pairs. Its volatility is also high depending on market conditions or news. Trading on EUR/USD is not eating a plate of rice J bad joke but it’s true. Trading on EUR/USD pair is quite tough as compared to other pairs because it has a high volume of traders. 

Information

Country             Europe and United States of America
Currency            Euro against United States Dollar
Volatility             High
Volume              High
Spread                Low

2- GBP/USD


GBP/USD also comes in major currencies. After EUR/USD, I prefer to do trading in GBP/USD provided that you wish to do trading in other currencies beside EUR/USD. If we talk about the volatility, this pair has a high volatility, but the volume of this pair is less than EUR/USD. This pair is also known as sterling pound or cable.

 

Information

Country             United Kingdom and United States of America
Currency            Great Britain Pound against United States Dollar
Volatility             High
Volume              High
Spread                Low

3- USD/JPY

Did you know?
USD/JPY is the combination of the two most traded currencies. 
After USD and Euro, Japanese Yen is the most traded currency in the world. The Yen is three decimal currency pair and the pip value of this pair is low. It is also one of the most stable currencies available in the Forex market.

Information

Country             Japan and United States of America
Currency            Japanese Yen against United States Dollar
Volatility             High
Volume              High
Spread                Low

4- USD/CHF

USD/CHF is the one of the primary pairs having United States Dollar and Swiss Franc. The Switzerland currency known as Franc and the nickname for this currency is Swissy. It’s one of the volatile currency pair in Forex market, but the volume of the pair is moderate.

Information

Country             Switzerland and United States of America
Currency            Swiss Franc against United States Dollar
Volatility             High
Volume              Moderate
Spread                Low

5- NZD/USD

NZD/USD pair is the combination of New Zealand Dollar and United States Dollar. The New Zealand Dollar also named as the kiwi, we are aware of the kiwi fruit from New Zealand J delicious kiwis! We can include kiwi in major currency pairs. The movement of the kiwi is not high, but it got a good stability. The overall movement is market dependent. It is a good pair to trade.

Information

Country             New Zealand and United States of America
Currency            New Zealand Dollar against United States Dollar
Volatility             Moderate
Volume              Moderate
Spread                Moderate

6- USD/CAD

USD/CAD pair is the combination of two dollars. The Canadian Dollar has its own value in the world which is the competitor of the US Dollar. We have seen a lot of volatility in this pair while opening of the market. There is not much difference in conversion rates of both the currencies. It’s not a bad choice to trade on this pair either.

Information

Country             Canada and United States of America
Currency            Canadian Dollar against United States Dollar
Volatility             High
Volume              Moderate
Spread                Low


Note: This article is written by an experienced trader. All information is self observed and personally experienced.


Major Currency Pairs in Foreign Exchange Trading

Copyright © 2016, Sanaullah Baloch
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