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Major Currency Pairs

The major currency pairs are the most popular and heavily traded currency pairs on the foreign exchange market. These major forex pairs are EUR/USD, GBP/USD, USD/JPY, USD/CAD  and so on which represent the world’s largest economies. Therefore, these major currency pairs are always traded in very high volumes. This article introduces the top 7 most traded currency pairs that play a vital role in the world economy.

major currency pairs

List of major currency pairs

EUR/USD (Euro/U.S. Dollar)
USD/JPY (US dollar/Japanese yen)
GBP/USD (British pound/US dollar)
USD/CHF (US dollar/Swiss franc)
AUD/USD (Australian dollar/US dollar)
USD/CAD (US dollar/Canadian dollar)
NZD/USD (US dollar/Canadian dollar)
GBP/EUR (British pound/Euro)
EUR/CHF Euro/Swiss franc)
EUR/JPY (Euro/Japanese yen)

top 7 most traded currency

Top 7 Most Traded Currency Pairs

EUR/USD

The most popular currency pair in foreign exchange trading is EUR/USD which raked First. Since the establishment of the European Central Bank in 1999, the euro has become the first priority thing as the base currency, and the euro came into existence on January 1, 1999. The eur to usd pair is affected by two important factors, namely the strength of the economy and the monetary policy implemented by the central bank. EUR/USD transactions account for 28% of daily foreign exchange transactions.

USD/JPY

Another popular currency for forex trading is the Japanese yen, and USD/JPY ranks second among the top 7 most traded currency pairs. The trading volume of the USD and JPY pair is very large, thus ensuring low spreads and high liquidity. Its extreme volatility has attracted many traders. USD/JPY transactions making up 13% of daily foreign exchange transactions. The main driving force of the dollar and the yen currency pair is not only US Treasury bonds, but also the interest rates of the United States and Japan.

GBP/USD

The British pound sterling (GBP) and US dollar (USD) are one of the major currency pairs out of top 7 most traded currency pairs. The GBP/USD currency pair ranks 3rd in the list of all major currency pairs. GBP/USD transactions account for 11% of daily foreign exchange transactions.

AUD/USD

The Australian dollar and the US dollar are also high-trading currency pairs, which ranks 4th among the major currency pairs. AUD/USD transactions making up 6% of daily forex trades. The AUD/USD (Australian Dollar/U.S. Dollar) pair is affected by factors that influence the value of AUD and the USD in relation to each other and other currencies.

USD/CAD

Another popular major currency pair is the US dollar and the Canadian dollar, which account for 5% of daily foreign exchange transactions. This currency pair ranks 5th among the major currency pairs. The impact of the US & the Canadian dollar (USD/CAD) on factors that affect the value of the US dollar (USD) and Canadian dollar (CAD) relative to other currencies.

USD/CHF

Among these top 7 most traded currency pairs USD/CAD is ranking in the 6th aposition. USD/CAD is greatly affected by the difference in interest rates between the Federal Reserve and the Swiss National Bank. USD/CHF transactions making up 5% of daily foreign exchange transactions. The USD/CHF (U.S. Dollar/Swiss Franc) is affected by different political or monetary policies.

NZD/USD

This is another currency pair with the largest trading volume which ranks 7th. New Zealand’s economy depends mainly on dairy products. Therefore, the price of NZD/USD changes with the price of the global dairy industry. The US dollar and the New Zealand dollar account for 4% of daily foreign exchange transactions.

Conclusion

There are many forex currency pairs, but the best currency pair provides the best trading experience. Therefore, these top 7 most traded currency pairs are more suitable for foreign exchange transactions. Traders should consider a various factors, such as technical analysis, fundamental analysis, and other factors that affect these currency pairs.