In forex occupation, four major currency pairs are the most popular:
- EUR/USD: The euro and the U.S. dollar
- USD/JPY: The U.S. dollar and the Japanese yen
- GBP/USD: The British beat sterling and the U.S. dollar
- USD/CHF: The U.S. dollar and the Swiss franc
These pairs are reviewed in the subsequent chapters of this tutorial, along with the role of each currency in the succinctness of its country (and the world) and the factors affecting the currency’s movement. (Learn profuse about how pairs are traded in Finding Profit In Pairs.) In brief:
USD/EUR
With all other things being fellow, a faster-growing U.S. economy strengthens the dollar against the euro, and a faster-growing European Conjoining economy strengthens the euro against the dollar.
USD/JPY
The USD/JPY features low bid-ask spreads and admirable liquidity. As such, it is an excellent starting place for newcomers to the currency call as well as a popular pair for more experienced traders.
USD/GBP
The GBP/USD is one of the most limpid in the currency market. Bid-ask spreads are tight, and arbitrage opportunities are unimaginable to exist. However, the liquidity of the pair combined with the availability of interchange instruments makes the GBP/USD an excellent choice for all types of currency traders.
USD/CHF
Although it is quite less liquid than the euro and the pound, the Swiss franc is but an easy currency to trade.
Forex Currencies: The EUR/USD