Major Currency Pairs
EUR/USD (Euro/US Dollar): Most traded currency pair, influenced by economic conditions and central bank policies.
USD/JPY (US Dollar/Japanese Yen): Second most traded pair, sensitive to global risk sentiment and Japanese interest rates.
GBP/USD (British Pound/US Dollar): Known as «cable,» influenced by economic data, Brexit, and global market conditions.
USD/CHF (US Dollar/Swiss Franc): Safe-haven currency pair, sought during times of economic uncertainty.
AUD/USD (Australian Dollar/US Dollar): Commodity-linked currency pair, influenced by commodity prices and global economic outlook.
Cross Currency Pairs
EUR/GBP (Euro/British Pound): Influenced by political and economic events in the Eurozone and UK.
USD/CAD (US Dollar/Canadian Dollar): Commodity-linked currency pair, sensitive to oil prices and Canadian economic data.
NZD/USD (New Zealand Dollar/US Dollar): Also known as «kiwi,» influenced by New Zealand’s agricultural exports and global risk sentiment.
EUR/JPY (Euro/Japanese Yen): Affected by both European and Japanese economic data and central bank policies.
GBP/JPY (British Pound/Japanese Yen): Sensitive to Brexit and Japanese interest rates.
Exotic Currency Pairs
USD/ZAR (US Dollar/South African Rand): Emerging market currency pair, influenced by political and economic stability in South Africa.
USD/MXN (US Dollar/Mexican Peso): Sensitive to Mexican economic data and global risk appetite.
USD/RUB (US Dollar/Russian Ruble): Affected by oil prices, political events, and sanctions against Russia.
USD/TRY (US Dollar/Turkish Lira): High-yielding currency pair, susceptible to political and economic uncertainty in Turkey.
USD/CNH (US Dollar/Offshore Chinese Yuan): Represents China’s foreign exchange market, influenced by economic growth and currency controls.
Factors to Consider
Volatility: Higher volatility pairs offer greater trading opportunities but also higher risk.
Liquidity: Liquid pairs ensure quick execution of trades and tight spreads.
Correlations: Pairs with low correlations can provide diversification and reduce portfolio risk.
News and Events: Stay informed about economic news and events that can impact currency exchange rates.