Most Active Forex Currency Pairs for Trading

In Forex trading, we find three types of currency pairs: major, cross, and exotic. Major pairs, which are the main currencies paired with the US dollar, represent the economies of developed countries: Eurozone, United Kingdom, Switzerland, Canada, Australia, New Zealand, and Japan. We can also include gold and silver because they are quoted in US Dollars. Cross pairs, on the other hand, are those not paired with the US dollar. Although not as much as with majors, it is also possible to profit with crosses, especially with AUD/JPY, EUR/JPY, GBP/JPY, and NZD/JPY. Finally, exotic pairs, which are more volatile and less liquid, represent emerging economies and are not recommended for beginners because they present greater risks and wider spreads. In Forex, currencies are traded in pairs: one currency rises, and the other falls. However, not all pairs are equally profitable: with some pairs, it is more likely to earn, while with others, it is less likely. The most profitable pairs are the majors. Among these, the most appreciated ones are, in order:

EUR/USD

(Euro / US Dollar). In Forex trading, the most traded and liquid pair is EUR/USD, which alone accounts for 27% of the volume of currency exchanges. In general, the euro is positively correlated with the British pound and the Swiss franc. Therefore, the EUR/USD pair tends to have a negative correlation with USD/CHF (US Dollar / Swiss Franc) and a positive one with GBP/USD (British Pound / US Dollar).

USD/JPY

(US Dollar / Japanese Yen). The second most traded pair is USD/JPY. This pair, sensitive to the state of relations between the United States and Japan, tends to correlate positively with USD/CHF and USD/CAD (US Dollar / Canadian Dollar) since the US dollar is the base currency in each of the three pairs.

GBP/USD

(British Pound / US Dollar). Thanks to the positive correlation between the pound, euro, and Swiss franc, the GBP/USD pair tends to have a negative correlation with the USD/CHF pair and a positive one with the EUR/USD pair.

USD/CAD

(US Dollar / Canadian Dollar). This pair tends to correlate positively with the AUD/USD (Australian Dollar / US Dollar), GBP/USD, and EUR/USD pairs because the US dollar is the base currency for all these pairs.

USD/CHF

(US Dollar / Swiss Franc). The USD/CHF pair tends to correlate negatively with the EUR/USD and GBP/USD pairs thanks to the positive correlation between the pound, euro, and Swiss franc, a currency long considered a haven in times of political chaos.

AUD/USD

(Australian Dollar / US Dollar). The AUD/USD pair tends to correlate negatively with the USD/CAD, USD/CHF, and USD/JPY pairs because the US dollar is the quote currency.