Are you overwhelmed and confused by the total number of currency pairs you can trade-in? Well! You must be wondering why to take the risks if you can stick to majors. If you have doubts about the best currency pairs to trade in then you have landed in the right place. The three main types of currency pairs are major, minor and exotic currency pairs. Being the most dominant and strongest, the US dollar is the most traded also. It is obvious to understand the reason for the same as it is the world’s largest economy. The US dollar is the preferred reference in the foreign exchange market worldwide. Some of the best portals like 70trades give an opportunity to have hands-on just by opening a free account.
Analysis of the Best Currency Pair to Trade by 70trades
A) USD/EUR– This is considered as the most popular currency pair. The best thing about this currency pair is that it is comparatively less volatile and it has the lowest spread among brokers. A lot of information on this currency pair is available.
B) USD/GBP– The popularity of this pair is because of profitable pips but one thing should be kept in mind that higher profits come with higher risks. This can be grouped into the volatile currency category.
C) USD/JPY– It is associated with low spreads and can be seen regularly in the forex market giving you profitable opportunities.
According to the market trends on the famous portals, like 70traders these three pairs are the most trusted pairs to trade in as they are the most liquid pairs in the market.
USD/EUR Trading Strategies
- Different strategies can be used when trading the USD/EUR pair because it is the most liquid cross and the highest trading volumes and volatility can be seen during the European and US trading sessions.
- The most serious trading occurs at the release of economic reports such as the US non-farm payrolls and unemployment rate, consumer inflation, retail sales, etc
- Proactive, reactive or mixed approach strategies are employed while trading the major economic releases.
Major Economic Indicators
1) Non-farm Payrolls
2) Producer Price Index
3) ISM Manufacturing
4) Consumer Price Index
5) Trade Balance
6) ISM Non- Manufacturing
7) Federal Reserve Minutes
8) Industrial Production
Even though the Eurozone’s economy is primarily service-oriented, the single-currency bloc has an advanced manufacturing sector. Services and manufacturing activities both influence the euro. Some of the indicators leading to volatility are eurozone GDP, retail sales and unemployment rates.
USD/JPY Forex Trading Strategy
High trading volumes can be seen during the Asian and the US trading sessions, especially when economic indicators are released and the most intense trading occurs at the release of economic reports such as the US non-farm payrolls, US or Japanese retail sales, US or Japanese balance of trade, policy decisions by the federal reserve or the bank of Japan.
Here is a list of macroeconomic indicators, which tend to cause the largest influence on the US dollar globally.
a) Non-farm payrolls
b) Trade balance
c) ISM manufacturing
d) Retail sales
e) Industrial production
The Economy of Japan and Major Economic Indicators
1) It is the third-largest economy in the world
2) It is the third-largest automobile manufacturer
3) It is the largest creditor nation in the world
1) Gross domestic product
2) Current account
3) Tankan survey
GBP/USD Forex Trading Strategy
Highest trading volatility can be experienced during the European and the US trading sessions, and especially when key economic indicators are released. The most serious trade occurs at the release of economic reports such as the US non-farm payrolls and the UK unemployment rate.
Here is a list of macroeconomic indicators, which leads to the largest influence on the British pound on global markets.
1) Bank of England’s monetary policy
2) Employment change
3) Gross domestic product
4) Trade balance
Conclusion: The Forex Trade is betting of one currency against others. Mainly three pairs that are globally traded and it can’t be said best for one particular individual as it depends on many factors. The pairs can be classified mainly into three categories major pairs, minor pairs, and exotic pairs. Different economic indicators are depending on the country’s currencies being traded. The majors have continued the trend of remaining the most trusted pairs to trade in as per the observations on 70trades.