The most traded currency pairs in the Fx market:
Forex market is like a huge marketplace where investors buy stronger currencies and sell the weaker currencies. There are different types of currencies, but some currencies are traded more than others on a global scale, there are only a handful of currencies that are actively traded on the Forex market. Let’s have a look at the list of the most traded currency pairs in this market, currencies are traded in pairs hence we call them currency pairs, it is always one currency Vs another.
These currencies are paired with the Us Dollar and they are from major economies and they are highly liquid.
- Eur/Usd (Euro vs Us Dollar)
- Usd/Jpy (Us Dollar vs Japanese yen)
- Gbp/usd (Great Britain Pound vs Us Dollar)
- Usd/Chf (Us Dollar vs Swiss Franc)
These currencies are also from major economies but they are called commodity currencies because they are heavily dependent on raw materials.
- Aud/Usd (Australian Dollar vs Us Dollar)
- Usd/Cad (Us Dollar vs Canadian Dollar)
- Nzd/Usd (New Zealand vs Us Dollar)
These pairs are not paired with the Us Dollar:
- Eur/Jpy (Euro vs Japanese Yen)
- Gbp/Jpy ( Great Britain Pound vs Japanese Yen)
- Eur/Gbp (Euro vs Great Britain Pound)
WHAT ARE THE CONTRIBUTING FACTORS OF CURRENCY’S VALUE AND EXCHANGE RATE:
- Interest rates in the country increase the value of that particular country’s currency. The higher interest rates tend to attract foreign investment and therefore increasing the demand of the home currency’s value.
- Trade balance between imports and exports play a crucial role in the increasing of a currency value and exchange rates.
- Gross Domestic Products (GDP) is a big measure of economic health of a country and actually a gauge to a country’s standard of living, good or favourable numbers also increase the value of the currency.
- Country’s level of debt can be managed, but if not managed well it leads to higher inflation rates and that may trigger the official devaluation( deliberate downwards adjustment to the value of the country’s currency) as Forex traders we need to understand the world of currencies that we invest in before we can even think about investing money, education first. Thank you for stopping by, you are much appreciated, please do come around again and kindly share this post using the share buttons below.