Forex Major Currency Pairs
The Forex major currency pairs are EUR/USD, USD/CHF and NZD/USD. These currencies are the most traded currencies on the Forex market, and are used by traders worldwide. Each of these pairs has unique characteristics and risks, which are discussed here.
The EUR/USD (Euro to US dollar) exchange rate is one of the most popular forex currency pairs on the market. It is a good choice for many forex traders, especially those who are interested in day trading and scalping.
There are a number of factors that drive the price of a forex pair. One of the most important is the strength of the economy of a country. Another is geopolitical risk.
For example, the EU and the United States are major trading partners, and news of the U.S.-China trade war or the Brexit can affect the value of the dollar.
Similarly, economic data released by the US and the EU can also have an impact on the Euro USD. This includes consumer price index, labor market data, GDP, and interest rate decisions.
A major indicator for the euro to dollar exchange rate is the Federal Reserve’s interest rate policy. If the Fed raises the rate, the US dollar can strengthen against the Euro.
The USD/JPY is one of the most traded pairs on the forex market. It has the second largest turnover, and is the third most actively traded currency pair. This makes it a popular pair to trade for both retail traders and larger institutional investors.
USD/JPY pair has always been a favorite among forex traders. However, recent history has seen the pair reach new highs, and it has also experienced some major reversals. While this can be frustrating for day traders, it can also be an opportunity to make a profit.
USD/JPY is often seen as a benchmark for the global economy. The pair is influenced by the two largest economies in the world, the United States and Japan.
These two nations are both large exporters, and their respective economic data influences the value of their currencies. During times of economic uncertainty, the Japanese yen enjoys a safe haven status, and the USD/JPY is often used to hedge currency risk for manufacturers and importers.
NZD/USD is one of the most commonly traded major currency pairs in the forex market. It is also the largest currency pair in terms of volume.
If you’re looking for a more comprehensive understanding of this currency pair, here are a few things you should know.
As with any currency, the price of NZD/USD is influenced by a number of factors, including the strength of the U.S. dollar, interest rates, and global commodity prices. The Reserve Bank of New Zealand also has a strong influence on the value of the kiwi.
NZD/USD may also be considered when you want to place a carry trade. Carry trades are when you invest in a higher yielding currency in exchange for a lower yielding currency. Traders often look to increase their profit margin by buying a higher yielding currency and selling a lower yielding currency.
One way to get started with NZD/USD is to use a leveraged trading platform such as TradeStation. A good leveraged platform will allow you to buy or sell currencies at a fixed percentage of the total transaction. This allows you to control the risk of the investment and make money on the trade.
The USD/CHF currency pair is a combination of the United States dollar and Swiss franc. It is a common trading pair in the forex market.
There are several factors that affect the price of the currency. These include politics, corruption, elections and central bank interest rates. Also, the strength of the economy of a country can directly affect the value of its currency.
While the majority of transactions occur in the four major currency pairs – USD/USD, EUR/USD, GBP/USD and AUD/USD – some traders may also include key pairs that don’t have the US dollar. Those that include these currencies are called “minor” pairs.
EUR/USD is one of the most popular pairs and is highly liquid. It is often correlated with GBP/USD and USD/CHF. However, it still has significant volatility. If the Euro strengthens, the EUR/USD will likely rise.
The Swiss franc has a strong positive correlation with other currencies, and Switzerland has a reputation as a safe haven. This makes the EUR/CHF pairing relatively stable.