Apr 03 2020 1
Basically, a currency quote is the price of two currencies. This is the value that you pay in one currency to buy another currency. For example, in the case that you see the price of EUR/USD 1.5. It means that you can buy 1 EUR with 1.5 USD. Every quote gets a different price, so you must know the best forex pairs to trade now.
When the value of a currency changes the relation of this currency to another currency is changed as well. Let’s say if the price of EUR/USD changes from 1.5 to 2. It means that EUR has increased its value to USD. In other words, USD decreased its value to EUR. Now we talk about the major currency pairs.
Best forex pairs to trade
In this article I will talk about the currency pairs which are most traded in the forex market. They symbolize for the most developed countries are traded in very huge trading volumes. As you may know the higher trading volume often leads to smaller spreads.
This currency pair is called Fiber. It takes the biggest trading volume of currency pairs all over the world, taking 25% of total trading volume in 2007. The EUR and USD are the symbols of the two most powerful economies of the world that are American and The Union of Europe.
The favor of this currency pair leads to its small spread. The enormous trading volume is the reason why there is not much deviation between the buying and selling quotes. This is one of the best forex pairs to trade for beginner.
It is called Ninja and is the second most favorable in the forex market. JPY is used by traders who borrow JPY to buy other types of currencies that bring higher benefits. The bank of Japan has fought against low rates of inflation and economic growth and this leads to the low interest of JPY.
Again, because of the big trading volume, the spread of USD/JPY is small. JPY is also considered one of the best forex pairs to trade during Asian session to many traders.
It is named Cable as it is used as quotations across the Atlantic Ocean. This pair is the most trading in the forex market like the pair of EUR/USD. This is closely connected with each other because of the fact that the economy of Europe and Britain are linked very tight. Traders often make use of the small spread and high liquidity of this currency pairs. This is one of forex pairs with highest daily range
It is called Swissy and it is the safest currency pair for any trader in the forex market. When the market is full of risks and volatilities, the traders will trade with CHF because Swiss is considered the most stable economy of the world. Given the world's current situation, this is the best currency pairs to trade today.
They are the currency pairs that are relevant to the value of commodities such as AUD/USD, USD/CAD and NZD/USD.
AUD/USD is known as Aussie. It is impacted by the value of explorative products, dairy products, wool and wheat. The economy of Australia is relevant to the economy of China because they are key business partners. The Reserve Bank of Australia also impacts on the price of AUD.
USD/CAD is called Loonie and is strictly related to the prices of old and natural gas. This is the reason why the price of CAD is very close to the price of USD.
NZD/USD is called Kiwi and it is affected by agriculture and travel industries. Again, this currency pair is also impacted by the Central Bank and the Federal Reserve Bank. The price of NZD is affected by the changes in the policy of these Banks.
In conclusion, in this article I have introduced to you the best forex pairs to trade in 2020. I hope that I will give you some recommendations on the currency pairs that meet your trading strategies and best forex brokers.