Major forex pairs: The Complete 28 Major Forex Pairs List

Like with most other https://forexbitcoin.info/ pairs, the strength of GBP/USD comes from the respective strength of the British and American economies. If the British economy is growing at a faster rate than that of America, it is likely the pound will strengthen against the dollar. However, if the American economy is doing better than the British economy, the reverse is true. There are HUNDREDS of currency pairs in existence but not all can be traded in the FX market. The chart below contains a few examples of exotic currency pairs. Basically, an exotic currency pair includesone major currency alongside an exotic currency.

As a result, spreads on trading forex major pairs are lower than on cross or exotic pairs, making them the best trading currency pairs. This is because forex trading is simultaneously buying one currency and selling another. The currency pair itself can be thought of as a single unit, an instrument that is either bought or sold. Examples are the euro and US dollar (EUR/USD), or the British pound and Japanese yen (GBP/JPY). The major cross currency pairs reflect the most liquid of trades that don’t include the US dollar in the forex market.

What are currency pairs?

Exotic currency pairs consist of one major currency and one currency from an emerging market . When you trade in the forex market, you buy or sell in currency pairs. With this comprehensive list of 28 major forex pairs, you’ll know exactly which pairs to watch, trade and invest in. If you’re interested in trading foreign exchange, you’ll need to understand the forex market, the global economy, the world’s currencies and their relationships to one another. Next up is the minors, which are different crosses of currency pairs that are less popular but are still liquid and tradeable. It’s a 28 major forex pairs list, so you can simply copy and paste this to add all of these pairs to your trading platform.

To date, there are about 180 different currency names in the world. So, the number of possible currency pair combinations is 16,110. It is often argued that the top traded pairs are also the most predictable ones. However, this fact is not supported and is based mainly on guesses.

Why Traders Trade the Major Currency Pairs

So when you purchase a currency pair, you buy the base currency and sell the quote currency . Vice versa, when you sell a pair, you sell the base currency and buy the quote one. As a result, traders often turn to CHF during times of increasing market volatility, but the Swiss franc will typically see less interest from traders during times of greater market stability. During times of increased volatility, it is likely the price of this pair would drop as CHF strengthens against the USD after experiencing increased investment. The USD/CHF currency pair is made up of the US dollar and the Swiss franc and is commonly known as the ‘Swissie’. USD/CHF is a popular currency pair because the Swiss financial system has historically been a safe haven for investors and their capital.

The bid price represents the amount of quote currency needed to receive one unit of the base currency. A currency pair is a quotation of two different currencies, where one is quoted against the other. The first listed currency within a currency pair is called the base, while the second currency that is the benchmark is called the quote. Look for currency pairs with low spreads, like EUR/JPY, AUD/JPY, EUR/USD, and GBP/USD. Although the forex market operates 24 hours a day during weekdays , some pairs are less active during the day. This pair indicates the value of the U.S. dollar against the forint, the official currency of Hungary.

GBP/JPY

The NZD/JPY currency pair represents how many Japanese yen are required to buy a single New Zealand dollar, or kiwi dollar. The yen is the third-most-popular currency in the world, and the kiwi dollar is typically listed in the top 10 most popular currencies in the world. The CHF/JPY currency pair represents how many Japanese yen are required to buy a single Swiss franc. The yen is the third-most-popular currency in the world, and both of these currencies are often perceived as safe-haven currencies because of their low interest rates. The EUR/AUD currency pair represents how many Australian dollars are required to purchase a single euro.

64% of retail investor accounts lose money when trading CFDs with this provider. An exotic currency pair includes one of the top 10 most traded global currencies with another currency from a developing country. Exotic currency pairs are the third most popular in the modern forex market.

These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.

Pros and cons of trading exotic currency pairs

For example, USD stands for the United States dollar, GBP is the Great Britain pound, etc. With gold quite literally out of the trading equation, countries that participated in the agreement suddenly had more autonomy over their currency exchange agreements, making them free-floating. To make sure you are completely across how the forex market works, see our page on what is forex trading. Devaluation risk – Exotics can be prone to big shifts when governments change policies without warning.

The CHF is largely considered to be a ‘safe-haven’ currency thanks to the stability of the Swiss financial system, which means that it may appreciate when other currencies lose value. AUD/USD, often called the ‘Aussie’, makes up 5.4% of daily forex trades. It’s popular among traders as the value of AUD is highly correlated with the commodities, so creates a means for FX traders to get exposure to the market without trading futures contracts themselves. Now, over 100 crosses and exotic pairs are available to trade on Forex.

• With the UK leaving the EU after Brexit in 2020, the Pound is unlikely to adopt the Euro any time soon.
• Check out our list of forex trading strategies to find one that suits your trading personality and goals.
• Read more examples of short selling currenciesusing spread bets and CFDs.

When a central bank raises interest rates, it can increase the value of a country’s currency, whereas lower interest rates can decrease the value of a country’s currency. EUR/GBP is the symbol for the euro to British pound sterling pair. It represents two of the largest economies in Europe – the UK and the EU, which are closely interconnected. The flow of capital between these economies allowed EUR/GBP to maintain a relatively stable price movement compared to other trading instruments. USD/GBP is in the top 3 most traded pairs with 9.5% of the daily turnover.

What Are Currency Pairs?

While there are eis swing trading safer than day trading is it less riskyht major currencies, there are only seven major pairs. Any pair containing one of the major currencies and the US Dollar is a major forex pair. When choosing a currency pair, make sure to analyze its intraday activity. Follow the news, because the most traded currency pair can change any time. High currency pair liquidity, in turn, enables trades with lower commission costs.

• Also known as the Kiwi, New Zealand is the largest exporter of dairy-based products, which means that if milk prices rise, the NZDUSD tends to follow.
• USD/JPY indicates how many yen you need to pay to buy one US dollar.
• When you trade Forex, you are anticipating that one currency will fall or rise relative to another currency.
• The American dollar is one of the most highly traded global currencies.
• USD/SGD is the exchange rate between the US dollar and the Singaporean dollar, also called the ‘Sing’.

76% of retail investor accounts lose money when trading CFDs with this provider. A wide spread between currencies indicates volatility, whereas a narrow spread means that there is a smaller difference between the bid and ask price. Most traders prefer a tighter or narrower spread, as it indicates lower volatility but high liquidity.

Exotic currencies have a higher level of volatility, which increases the risk of trading them, but also offers the chance of finding trading opportunities should there be none in the major FX pairs. Further, the emerging market currencies offer a higher level of interest rate, which can make them attractive for carry trades. This means that Forex pairs that were once strong can depreciate following economic changes.