The Best Currencies for Trading

Are the Major Currencies Really the Best Currency Pairs for Trading?

It is not surprising that the US dollar is the most dominant and powerful currency among all currencies, and the most widely traded. The reason for this is simply the enormous size of the US economy, one of the largest in the world. The US dollar is the preferred reference in most currency exchange transactions around the world. It is the dominant reserve currency in the world.

But what are the major currency pairs?

The following currency pairs (listed below) are not necessarily the best currency pairs for trading, but they have high liquidity and account for most foreign exchange transactions:

EUR/USD (Euro against US Dollar)

USD/JPY (US Dollar against Japanese Yen)

GBP/USD (British Pound against US Dollar)

AUD/USD (Australian Dollar against US Dollar)

USD/CHF (US Dollar against Swiss Franc)

USD/CAD (US Dollar against Canadian Dollar)

The values of these major currencies continue to fluctuate against each other, as trading volumes between the two countries change every minute. These pairs are naturally associated with countries that have greater financial strength and countries with large trading volumes around the world. In general, these pairs are the most volatile.