Major pairs always include the US dollar, and they are the most popular and liquid in the world. Forex pairs that do not include the USD are not major pairs. Exotic pairs , on the other hand, include a currency from an emerging economy e. Though they are the least traded forex pairs, exotic pairs are worth considering. They may include currencies, such as the Emirati dirham AED , the Malaysian ringgit MYR , the Thai baht THB , the Polish zloty PLN , and others.

While there are different foreign currencies that forex traders can sell and buy, here are the top 10 forex pairs to trade:. Euro EUR is the currency of the European Union, while the Dollar USD is the currency of the United States of America. Most European Union countries are characterized by developed economies.

Also, in the United States are located the largest companies in the world. The European Central Bank has the most significant impact on the Euro, as interest rates play a vital role in the movement of this currency pair. Meanwhile, the most significant impact on the Dollar has the US Federal Reserve - often referred to as the Fed, which eight times a year issues reports on the country's economy, influencing the movement of the Dollar. We all know that the euro and the US dollar are two of the leading currencies across the globe.

Note that as the market is going forward, experts expect that the euro will strengthen. You should consider whether you can afford to take the high risk of losing your money. This is the second most traded forex pair in the currency market, often associated with low spreads. Just like the almighty dollar, the Japanese yen can be seen as a safe haven in times of uncertainty. It should be noted that these currency pairs are highly volatile, but there are times when they have higher volumes.

When we talk about the factors that affect the Japanese economy, the JPY currency is not only affected by economic factors, but also by the many natural disasters that often hit Japan, causing the JPY to move. Otherwise, the Bank of Japan issues reports on which investors rely when making their decisions. The British pound and the US dollar are among the most popular forex currencies to trade. Note that due to the uncertainty around Brexit, this pair may experience high volatility.

But, the critical point when this currency pair got a boost is after the fall of the Bretton Woods Agreement, and in the s this currency pair saw volatility that it had never seen before. The factors that affect this currency pair the most are the economic ones, but also the political situation. Also, the Bank of England Monetary Policy Summary reports each month on the interest rates movements, which has an impact on the decision of investors in their investment projects. Of course, the forex market is open 24 hours, but there are certain times when this pair experiences higher volumes.

The Canadian Dollar CAD was classified along with the US dollar USD until when it began to be controlled by the Bank of Canada.

Although the Bank of Canada does not directly affect the currency, it does issue some policies that promote economic growth and influence currency movements. Canada has good trading relations with the USA, which has helped to maintain a good position of its currency in the forex market. Note that Canada is a leading exporter of oil and grains. This trading pair, otherwise known as "Aussie" has excellent liquidity and offers many opportunities for daily trading.

Australia's economy is strong, and Australia has good trading relations with the United States. These relationships affect the price movements of this currency pair. In Australia and the USA reached the Free Trade Agreement AUSFTA in which case the export of US goods to Australia increased drastically. The yen is now commonly held as a reserve currency behind the USD, the euro, and the GBP.

This means that the value of yen sees a number of daily fluctuations, but the central banks of Japan frequently buy and sell the currency en masse to keep exchange rates under control. The Japanese government places a high premium on keeping the value of the yen low to cultivate a competitive export market. The value of the Canadian dollar is also heavily correlated with commodity prices.

In , oil prices fell to prices not seen in over a decade, and the Canadian dollar also suffered, slumping to an exchange rate of 1. If you want to exchange USD for CAD, carefully monitor the price of oil to determine the ideal time to buy.

The British pound sterling GBP is the official currency of the United Kingdom, used throughout England, Scotland and Wales. Despite the fact that the United Kingdom was an official part of the European Union until the summer of , the United Kingdom never switched over to the euro like most countries in Western Europe.

The GBP is the 3rd most-traded currency , trailing behind the USD and the EUR. Two major events that have significantly influenced the price of the GBP in the last decade. During the years through , the price of GBP wildly fluctuated due to the worldwide influence of the Great Recession.

In , the GBP reached an all-time high trading at £2. Though the pound would recover in the coming years, it would eventually even out to around £1.

The 2nd major influence on the price of GBP was Brexit , the name given to the vote that would separate Britain from the European Union. The Swiss Franc CHF is the official currency of Switzerland.

Investors who invest in CHF do so most to protect their assets in times of turbulence. This means that in times of volatility, the CHF will usually appreciate when other currencies lose value.

On the opposite end of the spectrum, the CHF will often lose value when other currencies are appreciating. During the Great Recession, CHF appreciated against all other currencies except the JPY. CHF and to a lesser extent JPY are 2 of the most popularly traded safe-haven currencies in the world thanks to their low volatility in times of major market movements. The Australian dollar AUD is the official currency of Australia and the 6th most commonly-traded currency pair.

The value of the AUD is closely associated with CAD thanks to the interdependent relationship that the economies of Australia and Canada share.

AUD is also intrinsically correlated with the commodities market, as Australia remains 1 of the largest exporters of coal and iron ore in the world.

During the commodity slump of , AUD reached a low point not seen since the s. Trading forex with a reputable broker is of the utmost importance when it comes to the forex market. Check out this list of top broker options to trade forex currency pairs. Claim Exclusive Offers. CedarFX is not regulated by any major financial agency.

The brokerage is owned by Cedar LLC and based in St. Vincent and the Grenadines. Each individual currency largely depends upon its interactions with other countries and the exports it produces. Read the news , check current events and consider events impact governments around the world, investor sentiment and currency prices. Learn what makes countr ies unique in order to predict which currencies will rise and fall in value based on current economic or political climates.

Meet other traders, research online and travel to understand the world. D iversify your investments and become a more worldly person in the process. Forex traders used to make educated guesses about how a currency value will change by observing historical fluctuation patterns. Nearly all charts have personalized setting options to allow you to view a variety of technical indicators like price and volume in order to analyze price movements. The 3 most commonly used forex charts are bar charts , line charts and candlestick charts.

Related content: WHAT MAKES THE FOREX MARKET MOVE? com , registered with the Commodity Futures Trading Commission CFTC , lets you trade a wide range of forex markets plus spot metals with low pricing and fast, quality execution on every trade. Learn more about FOREX. My Account. Benzinga Plus. Log In. Our Services. News Earnings. Retail Sales.

Insider Trades. Markets Pre-Market. After Hours. Binary Options. CME Group. Global Economics. Penny Stocks. Digital Securities. Ratings Analyst Color. Price Target. Ideas Trade Ideas. On top of that, swing trading also offers a little more trading time flexibility, allows you to more clearly identify your positional boundaries to enter and exit different trades, and helps protect you with smaller stop losses.

The trick, though, is finding the right currency pairs that allow you to make money on these kinds of swing trades. Just as important as finding the right pairs to trade is making sure that you steer clear of pairs that cannot produce with this strategy. These pairs are a lot more volatile than major currency pairs and a lot less liquid. That makes them tougher to predict and tougher to swing reliably. The unpredictability and volatility means they can swing one way and another before you even have a chance to execute your positions.

For these reasons and more you want to do you level best to keep clear of minor pairs and exotics. Moving averages give you the kind of insight you need especially longer term moving averages to spot trend reversals.

Not only that, but they can also give you the insight you need to spot the potential strength of the reversal. The Relative Strength Index RSI is another indicator that will help you be a more successful swing trader.

This is huge for spotting a new trend in the short term, giving you the green light — or the red light — for a swing trade.

And the answer is as simple as can be, the safest currency pairs are the most stable ones. Read on to learn which currency pairs are the best to start your trading journey.

In the FX world, all currency pairs are conventionally divided into three groups: exotics, minors, and majors. Such classification is based on the criteria of trading volume, liquidity, and volatility.

Exotics e. They are prone to extremely high volatility, meaning their quotes change drastically, sometimes in a matter of seconds. The number of market participants trading exotics is relatively small, which means their trading volume is low. Read more: Why Trading Low-Volume Currency Pairs Can be Risky. Minors e.

And lastly, major currency pairs are the ones most heavily traded in the market. Due to their high liquidity, major currency pairs are often accompanied by better trading conditions, including tighter spreads. Saying a "stable currency pair," we mean one that doesn't tend to sharp price fluctuations throughout a short time period.

Given the classification above, the most liquid, and thus the least susceptible to large price swings, pairs are majors. The liquidity of these pairs is justified by high trading volume, especially supported by institutional trading.

The high liquidity of a currency pair guarantees that you will not find yourself holding an asset you cannot sell when needed, simply because there is no one to buy it at the current price.

Read more: How to Read Forex Currency Pairs. This pair can boast high liquidity as it consists of the currencies of the two powerful markets. The best time to trade the pair is the overlap of the European and American trading sessions.

The British pound also has a positive correlation with certain commodities, such as base metals and Brent crude oil. You can find the detailed schedule of trading sessions here. Hence, traders of this pair should closely monitor OPEC meetings. Understandably, the most active trading time for the pair is the operating hours of the North American trading session.

Trading the pair may be advantageous during the North American or Pacific trading sessions when there is important news in Australia. China's economy is strong, which makes its currency a stable one. Moderate volatility of the pair allows traders to profit from daily fluctuations without the risk of too abrupt price changes. Interest rates, GDP, and employment data of Switzerland and the US are the most important indicators that predetermine the quotes.

The overlap of the European and the North American trading session is probably the best time for trading the pair. Read more: Forex Trading for Beginners in It is highly influenced by events taking place in Japan and the UK. The pair can develop strong trends allowing traders to gain many pips on a single position. A short period of overlap between the Asian and the European sessions can be great for trading this instrument.

The most important data to monitor when trading the pair are interest rate changes of the Reserve Bank of New Zealand and the Fed. Read more: What are the Best Forex Currency Pairs to Trade.

It is true that a certain degree of volatility is required in order to profit in the forex market. However, too much of it may be risky. This group of currencies is highly liquid and, as a result, unlikely to experience significant unexpected price moves. By having a trading account on JustMarkets, you benefit from advantageous conditions, including high leverage, low spreads from 0.

And if you have any questions, there is a helpful support team working round the clock to ensure you have the most convenient trading experience. Try your hand at currency trading by opening a demo account on JustMarkets. A practice account will help you learn trading basics and develop a strategy before investing money. Start trading today to take care of your future tomorrow. Beginner traders are recommended to trade major currency pairs and avoid trading exotics.

The strength of the currency is attributed to the fact that Kuwait is a major exporter of oil to the global market. It is best to start learning by trading a single currency pair. It is also advisable to trade a major currency pair, e. by JustMarkets , Please enable JavaScript in your browser. Get free daily updates on four major currency pairs, stock indices, and commodities. What are the Most Stable Currency Pairs?

What is the Safest Currency Pair to Trade? What is the World's Strongest Currency? How Many Currency Pairs Should I Trade? Open Real account Open Demo account Download MT5 platform Download MT4 platform. Last Articles. Best Forex learning platforms. When you have some savings, it is useful to find an effective way to increase them. How to choose your trading style? What are the trading styles? In order to answer this question, it should be noted that there are active trading and passive investing.

Netting and hedging? What is the difference? The vast majority of traders, not only beginners but also more experienced ones, do not know the difference between these order execution systems. How to Buy and Sell Cryptocurrency. Forex Trading for Beginners in How to become a forex trader.

This is the second most traded forex pair in the currency market, often associated with low spreads. Though forex trading is attracting more and more people from all over the globe, not many beginners in the world of forex know what the most profitable and tradable currency pairs are. Keep up to date with the forex market. Then please do not hesitate to share what forex pairs you are planning to trade. We all know that the euro and the US dollar are two of the leading currencies across the globe. Having an understanding of the top 10 forex pairs to trade is crucial to help you make profitable moves. CHF and to a lesser extent JPY are 2 of the most popularly traded safe-haven currencies in the world thanks to their low volatility in times of major market movements.

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