A currency pair is represented by two ISO currency ISO codes plus a delimiter, such as GBP/USD, where the first code stands for “base currency” and the other for “secondary currency”.
The mainstream currency pairs in the foreign exchange trading market are mainly those containing US dollar, such as euro /US dollar (EUR/USD), British pound /US dollar (GBP/USD), Australian dollar /US dollar (AUD/USD), and so on. Let’s take stock of the major currency pairs below.
Foreign exchange What are the major currency pairs EUR/USD: Euro vs US Dollar USD/JPY: US dollar vs Japanese yen GBP/USD: British pound vs US dollar AUD/USD: Australian dollar vs US Dollar USD/CHF: US dollar vs Swiss Franc USD/CAD: US dollar vs Canadian dollar NZD/USD:
NZD vs US Dollar EUR/CHF: Euro vs Swiss Franc EUR/CAD: Euro vs Canadian Dollar EUR/AUD: Euro vs Australian Dollar EUR/GBP: Euro vs British Pound In addition to major currency pairs there are secondary currency pairs internationally.
For details, please refer to the chapters of the minor currency pairs listed in the previous foreign exchange currency pairs, which will not be repeated here.
What are the hot currency pairs?
What are their characteristics?
Sterling /USD (GBP/USD) Sterling is more volatile and less stable than the euro.
The UK is closely related to the economy and politics of the eurozone, and it used to be an important member of the European Union. Therefore, economic and political changes in the European Union have a great impact on the pound.
EUR/USD The euro is characterized by a relatively stable historical trend, heavy trading volume, and less human influence.
To some extent, there is an inverse relationship between euro and US dollar. In foreign exchange direct trading, Euro can basically be regarded as the rival currency of US dollar, and currency pair investors can also judge the strength of US dollar with reference to Euro.
Australian dollar is a typical commodity currency, which is characterized by high interest rates, currency exchange rates and certain commodities.
For example, the price of crude oil and gold move in the same direction. Because Australia has an absolute advantage in the international trade of coal, iron ore, copper, aluminum, wool and other industrial products and cotton products, the fluctuation of the Australian dollar fluctuates greatly with the prices of these commodities.
In addition, the Australian dollar is a high-interest currency, which is greatly influenced by the changes in the interest rate outlook of the US and the Treasury bond yields that reflect the interest rate outlook.
The major currency pairs mentioned above and popular currency pairs can be found on most platforms, such as the Doo Prime currency Pair Investment platform, which also offers major currency pair trading.
What are the right currency pairs to trend?
As for the currency pairs suitable for the trend, you can refer to the previous “What are the major currency pairs” and “What are the popular currency pairs”.
Here, take the pound /US dollar (GBP/USD) currency pair as an example, because GBP/USD is a currency pair with a relatively continuous and obvious trend in foreign exchange.
While GBP/USD is one of the most heavily traded currency pairs for foreign exchange, it is also the most volatile of the major currency pairs.
The main reason for the sharp volatility is that the pound, more than other currency pairs, has been swayed by political and economic news for the third year running.
On average, the quotation of the currency pair changes by 100 points every day.
The main reason for the pair’s dramatic moves is the Brexit turmoil.
Traders around the world are paying extra attention to Brexit-related news every day.
In general, such news is controversial and triggers high volatility across all foreign exchange pairs, including sterling and the dollar.
This currency pair is the ideal investment asset for activist investors who want to trade high volatility on terminal charts.
Moreover, sterling is more susceptible to the dynamics of the dollar than a single currency, allowing investors to gain more from the same movement.
What are the currency pairs listed directly?
In the international foreign exchange market, the Japanese yen, Swiss franc and Canadian dollar are all marked directly. For example, the Japanese yen 108.84 means 108.84 yen per US dollar.
In addition to the euro, British pound, New Zealand dollar and other currencies with direct pricing method, other currencies adopt indirect pricing method, that is, how many units of foreign currency can be exchanged for one dollar.
What platforms are available for currency pairs?
Please refer to the previous article “How to choose a good currency pair platform”.
Currency pair is a traditional foreign exchange trading product, and almost all platforms under formal supervision have this service. However, it should be noted that the transaction costs of each platform are different. In Europe and America, platforms with low spread and high leverage are generally selected.
In summary, the types and characteristics of international currency pairs are summarized. Investors can buy and sell different currency pairs according to their needs, but please remember to carefully choose the high-quality currency pair trading platform.
