What are the major currency pairs? (2024)

What affects the price of forex pairs?

There are a number of factors that affect the price movements of every forex pair. These include interest rates, geopolitical instability, the strength of their country’s economy and the level of foreign direct investment (FDI) in the domestic market.

Interest rates are controlled by the monetary policy of that currency’s respective central bank. For example, if the US Federal Reserve (Fed) raises interest rates, it will often cause the US dollar to strengthen against the euro, making the price of EUR/USD drop.

This is because investors tend to favor countries with higher interest rates when they are deciding where to store their money. Essentially, an investor will receive a better return on their initial capital in an environment with higher interest rates.

Geopolitical instability could mean that investors and traders lose confidence in a country’s ability to govern, or expect that there’ll be difficult times ahead for the economy. This might lead to the currency stagnating or becoming too volatile to trade.

Trading a volatile market all depends on an individual trader’s appetite for risk, with some traders preferring markets with frequent movements as an opportunity to realise a quick profit. However, volatile markets are also higher risk and losses can happen just as quickly.

With forex majors, such movements are less frequent – although important political events can still affect the price of sterling and euro currency pairs.

FDI can affect the price of a currency pair because an increase in FDI is indicative of greater investor confidence in that country’s economy and infrastructure. This can increase demand for that country’s currency, which will cause the price to rise.

For example, if there was a significant increase in FDI in the American economy, it would be expected that the value of the US dollar would strengthen relative to other currencies that it is paired with.

The strength of a country’s economy and the level of FDI are often directly correlated.

FAQs

What are the major currency pairs? ›

Major currency pairs (“majors”) are those that include the U.S. dollar and are the most frequently traded. There are seven of them: EUR/USD, USD/JPY, GBP/USD, USD/CAD, USD/CHF, AUD/USD, and NZD/USD.

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What are the 28 currency pairs? ›

EUR/USD (Euro/US Dollar)
USD/JPY (US Dollar/Japanese Yen)
GBP/USD (British Pound/US Dollar)
USD/CHF (US Dollar/Swiss Franc)
USD/CAD (US Dollar/Canadian Dollar)
AUD/USD (Australian Dollar/US Dollar)
NZD/USD (New Zealand Dollar/US Dollar) EUR Pairs.
EUR/JPY (Euro/Japanese Yen)

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Jan 12, 2024

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What are the major currency pairs nicknames? ›

List of major currency pairs

	Currencies in the pair	Nickname
NZD/USD	US dollar and Canadian dollar	Kiwi
GBP/EUR	British pound and euro	Chunnel
EUR/CHF	Euro and Swiss franc	Euro-swissie
EUR/JPY	Euro and Japanese yen	Yuppy

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What's the best currency pairs to trade? ›

The most popular currency pairs traded in the forex market include the following:

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

May 23, 2023

What are currency pairs called? ›

A currency pair is considered a price quote between two different currencies within the foreign exchange market. The first listed currency within a currency pair is called the base, while the second currency that is the benchmark is called the quote.

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What are the 7 minor currency pairs? ›

Here is a list of minor currency pairs:

EUR/GBP - Euro/British Pound.
EUR/AUD - Euro/Australian Dollar.
GBP/JPY - British Pound/Japanese Yen.
AUD/JPY - Australian Dollar/Japanese Yen.
EUR/CAD - Euro/Canadian Dollar.
NZD/JPY - New Zealand Dollar/Japanese Yen.
GBP/AUD - British Pound/Australian Dollar.

Feb 5, 2024

How many currency pairs exist? ›

The total number of currency pairs available for trading can range from a few dozen to over a hundred, depending on the specific Forex broker or trading platform. However, the most actively traded and liquid currency pairs are typically the major and cross-currency pairs listed above.

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What forex pairs are most active right now? ›

Top Movers

D	Pair	Rate
1	AUDNZD	1.0880
2	AUDJPY	105.39
3	GBPNZD	2.0743
4	AUDUSD	0.6673

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What is the most traded currency pair in the world? ›

“The Fiber” is a combination of the Euro and the US dollar. This is generally considered the most traded currency pair as it stems from two of the world's largest and most reputable economies.

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What is the slang for currency pairs? ›

The following nicknames are common: "Swissy" or "Euro-Swissy" for EUR/CHF, Fiber for EUR/USD, Chunnel for EUR/GBP, Loonie and The Funds for USD/CAD, Aussie for AUD/USD, Gopher for USD/JPY, Guppy for GBP/JPY, Yuppy for EUR/JPY pairing.

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Which currency pair is called the beast? ›

With the GBP/JPY pair, the British pound is the base currency and the Japanese yen is the quote currency. This shows you how many Japanese yen you can buy for one unit of British pounds (£1). The GBP/JPY forex pair carries two common nicknames in foreign exchange trading circles – the “Geppy” and “The Beast”.

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Which pair is called ninja? ›

The USD/JPY (US Dollar/Japanese Yen) is also known as 'The Ninja' and is the second most traded currency pair.

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What is the hardest currency pair to trade? ›

Exotic currency pairs are the most difficult pairs to trade. They are highly volatile and provide very little liquidity and widest spreads. Due to the very high volatility these pairs are extremely difficult to anticipate and trade. These pairs include: AUD/NOK, AUD/PLN, AUD/SEK, AUD/SGD, CAD/SGD, CHF/SGD, etc.

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Which pair is best for beginners? ›

Beginners may find comfort in focusing on major pairs like EUR/USD and USD/JPY, as they provide a good balance of stability and trading opportunities.

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Which currency pair is safe to trade? ›

EUR/GBP

Currency Pair	Description
EUR/USD	Highest trading volume. Influenced by Dollar and Euro.
USD/JPY	High volume, low spread. Central Bank of Japan intervenes.
GBP/USD	Top three pair, Brexit impacted. Significant trading volume.
USD/CNY	Among most traded. Chinese Yuan growth. Minimum spread 0.0007.

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Apr 24, 2024

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What are the big 5 forex pairs? ›

The major currency pairs on the forex market are the EUR/USD, USD/JPY, GBP/USD, and USD/CHF. The four major currency pairs are some of the most actively traded pairs in the world, along with the so-called commodity currency pairs: USD/CAD, AUD/USD, and NZD/USD.

What are major crosses and exotics? ›

The crosses that trade the most volume are among the currency pairs in which the individual currencies are also majors. Some examples of crosses include the EUR/GBP, GBP/JPY, and EUR/CHF. Exotic currency pairs include currencies of emerging markets. These pairs are not as liquid, and the spreads are much wider.