Most Traded Currency Pairs by Volume in 2022 A Pie Chart Forex Sentiment Board

Interest Rates – Interest rates are essential for traders in the forex market. The higher the interest is made on the invested currency higher the profit will be. There are 180 circulating currencies all over the world but only few are used in forex market. The forex major pairs list will help you find out the most profitable currencies. 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.

Economic Data – Economic data reports provide the idea of the performance of the state’s economy. CPI data, non-farm payroll, retails sales, purchasing managers index and others are important economic data that determines the currency rates. Margin trading in the financial markets is speculative and implies a high level of risk, including full loss of deposit. AUD/USD tends to have a negative correlation with USD/CAD, USD/CHF, and USD/JPY as the US dollar is the quote currency in these cases. Trading the pair may be advantageous during the North American or Pacific trading sessions when there is important news in Australia.

CHF and 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 last decimal place to which a particular exchange rate is usually quoted is referred to as a pip . The EUR/USD currency pair takes the largest portion of the overall trading volume.

All Forex traders want to know the best currency pair to trade and what currency pairs professional Forex traders choose. There’s no reason to consider trading the exotic currency pairs when other Forex currency pairs have far greater potential with available liquidity. The common denominator with these currency pairs is that they represent countries with high volumes of worldwide trade, and they are also countries with financial power. We have picked out five of the most popular Forex currency pairs for 2022. These currency pairs are the most traded with beginners and experienced Forex traders.

forex most traded pairs

Below is a list of five of the most traded currency pairs in the world, which is organised according to current economic data, spreads and margin rates from our platform. The traders that prefer day trading, commonly choose forex pairs to trade with the lowest spreads. Normally, the EUR/USD and GBP/USD pairs are the most favorable for day trading.

The Australian Dollar (AUD)

There’s no reason to settle for second best if you want to profit from trading Forex. Watch for one of these three scenarios for a high probability trade on CAD/JPY. August, the price broke npbfx out above the descending channel but has met a previous resistance zone at $88.30 and the 50 EMA . Since mid-July, the price has stuck on a strong historical area of support at $0.7320.

Traders enjoy tight bid-ask spreads on the GBP/USD due to its high liquidity. There are several important real estate market metrics today. If we are talking about the United States, these are Building permits, Housing Starts, New Home Sales, Existing Home Sales, and Pending Home Sales. These economic metrics are often not highlighted in economic calendars, but they are the most important parameters reflecting the state of the real estate market in the country. The strength of the currency is attributed to the fact that Kuwait is a major exporter of oil to the global market. NZD/USD. This currency pair sets the currency of New Zealand against the US dollar, and it is referred to as the kiwi dollar.

The result is a market that offers hundreds of possible currency pairs to trade. The minor currency pairs don’t include the dollar but other global currencies like the Euro and Japanese Yen. Liquidity may be lower than the major currency pairs, but that said, with over $6.6 trillion traded five days a week, the minor pairs still have sufficient liquidity for trading.

If you find two positively correlated assets poised to move in the same direction, your trade has a higher chance of being profitable. This gives swing traders an opportunity to maximize their profits by opening a position and riding the price gain or loss for the bulk of this long trajectory. If you’re not sure which pair to trade, then you can begin by putting all your favorite ones into a watchlist. The South Korean economy has grown during the turn of this century to become the fourth largest in Asia and the eleventh in the world as of November 2019. The GBP/USD and EUR/USD pairs are active when New York and London sessions overlap. Canada has a strong economy making the Canadian dollar stable and relatively predictable.

They are split into a base currency and a secondary quote currency. The majors are the most commonly traded currency pairs globally. Outside of the four main currency pairs, many consider these three to be additional major trades. At times, any of these pairs might actually be greater in volume traded than the four majors above. They are referred to as commodity pairs because of the fact that the economies of each are majorly dependent on a specific commodity. Just like the first two most popular currency pairs on this list, the quote price of GBP/USD is affected by the respective interest rates set by the Bank of England and the Fed.

USD/CHF is a popular currency pair for Forex beginners and professional Forex traders. Liquidity is good, and the pair is easy to read for technical analysis. Larger pairs have more volume and thus more stability and less volatility. They are less likely to oscillate wildly and thus easier to analyze and profit from. Stability can be a double edged sword because there are fewer opportunities but it is still easier for investors to predict, analyze, and anticipate. Many of the major currency pairs have long stretches of stability and brief periods of volatility, providing fairly predictable opportunities.

The top 10 most popular currency pairs include the Major ones and several Cross currency pairs. All currency pairs can be profitable, depending on liquidity and volume plus the Forex trader’s skill. In the list of best Forex currencies to trade, there is a mix of currency pairs suitable for all levels of traders, and we explain why they are the best Forex pairs to trade. As the second most traded currency pair in the world, the US dollar and Japanese Yen also offer traders low bid-ask spreads and tons of liquidity. The Yen is a popular currency with carry traders who prefer to borrow it in order to invest in higher-yielding banknotes.

👉 If you want to receive an invitation to our live webinars, trading ideas, trading strategy, and high-quality forex articles, signup for ourNewsletter . As we mentioned in the first part of this article, trade wars and other politically motivated events can have a huge impact on currency pair rates (see USD/CHN). octafx reviews It is the main goal of a country’s central bank to maintain and manage financial stability. Banks do this by increasing rates which in turn creates a higher demand for the currency. This is because investors will look for a higher yield in order to appreciate currency relative to other currencies.

GBP/USD – (British Pound – U.S. Dollar)

This article will cover the top 10 most traded currency pairs you should focus on in 2022. The active monetary policies of the Reserve Bank of New Zealand can make for rather impactful changes to the price of the NZ dollar compared to the US’s. The term Kiwi is in reference to the small, flightless, native bird in New Zealand, called the Kiwi bird. In recent years, this currency pair has fluctuated in price quite unpredictably – primarily due to the uncertainty surrounding Brexit. The high level of volatility can be attractive to traders, but it is important to have a risk management strategy in place before opening a position in a volatile market. In 2019, USD/CAD transactions made up 4.4% of daily forex trades.1 The strength of the Canadian dollar is closely linked to the price of oil because oil is Canada’s main export.

Most traded currency pairs

Unlike the currency pairs mentioned above, GBP/JPY doesn’t include the US dollar. 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 USD/CAD currency pair is negatively correlated with the GBP/USD, AUD/USD, and EUR/USD due to the US dollar being the quote currency in all three pairs. Since the Canadian dollar is a commodity currency, the “loonie” (USD/CAD) is much affected by the oil quotes.


However, when the markets are in a more stable position, the USD/CHF may be of less interest to traders who opt for other major currency pairs that are featured on this list. “The Cable” is a combination of the British pound sterling and the US dollar. This is seen as a particularly volatile currency pair, due to its frequent fluctuations in price, exchange rate and pip movements. This can result in large profits if the trader is successful, however, it can result in equally great losses when market volatility is at a high. The GBP/USD is particularly favoured by day traders​, who aim to take advantage of price fluctuations by dipping in and out of the market at a quick and precise pace. For this reason, it is also one of the best forex pairs for swing trading​, another short-term forex strategy.

AUDUSD (Australian dollar/US dollar)

This article will look at the most traded currencies and the factors driving their value. After a few months of daily trading and self-analysis, you’ve cracked it. You have your preferred timeframes, currency pairs, technical indicators etc., and now you have all that free time to spend doing fundamental analysis. What novice Forex traders may not realise is that each currency pair has unique characteristics. Some currency pairs have more liquidity and volatility than others. What’s the difference between major currency pairs, minor currency pairs and exotic currency pairs?


The commodities market in Australia is a great driver of this currency pair, as mining, wool, beef, and wheat have a strong sway over price movement. This pair also seems to correlate to how well China does since Australia and China do a lot of trade together. Central banks tend to raise interest rates when the economy is growing, and cut them to stimulate a struggling economy.

It also has one of the tightest spreads in the forex market, reducing the overall costs of the trade. The movement in major forex pairs is often more predictable within the FX market, due to the vast amount of knowledge and research that traders have collected over the years. It is true that a certain degree of volatility is required in order to profit in the forex market. This is why many traders prefer to trade major currency pairs (EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, GBP/JPY, and USD/CAD). This group of currencies is highly liquid and, as a result, unlikely to experience significant unexpected price moves.

This is because a currency’s interest rate is such a big factor in determining its perceived value. Decide if you want to buy or sell based on whether you think that the instrument’s price will rise or fall. Spread is the distinction between the offer cost and the asking cost. This cost is a commission for the specialists on which traders are trading for their benefits. In the event that your offer cost is $40 and you ask cost is $25, at that point the spread cost or the commission of the agent is $15 and this sum is gotten by the dealers. Learn how and why gold is viewed positively by forex traders.

The first three hours of a trading session are usually the most active with the highest liquidity. In reality, it’s not much 12trader work to do fundamental and technical analysis. Yes, at first, it might be a challenge because you are not used to doing it.

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