Forex Major Pairs are the most traded currency pairs in the foreign exchange market, and they typically include the U.S. dollar (USD) paired with other major currencies. These pairs are highly liquid and are favored by traders due to their stability and volume of trade. Here’s a list of the seven major forex pairs:
- AUD/USD (Australian Dollar/US Dollar) – Represents the Australian economy and is influenced by commodity prices.
- EUR/USD (Euro/US Dollar) – The most traded currency pair in the world.
- GBP/USD (British Pound/US Dollar) – Known as “Cable,” it reflects the economic relationship between the UK and the US.
- NZD/USD (New Zealand Dollar/US Dollar) – Reflects the economic conditions of New Zealand.
- USD/CAD (US Dollar/Canadian Dollar) – Tied closely to oil prices, given Canada’s oil exports.
- USD/CHF (US Dollar/Swiss Franc) – Often considered a safe-haven currency pair.
- USD/JPY (US Dollar/Japanese Yen) – Popular among traders due to Japan’s significant economic influence.
Key Characteristics of Major Pairs:
- High Liquidity: These pairs have a large volume of trades, making it easier to enter and exit positions.
- Tight Spreads: The difference between the buying and selling price is usually smaller, which is beneficial for traders.
- Economic Influence: Major pairs are influenced by economic indicators, geopolitical events, and central bank policies.
These pairs are essential for anyone looking to trade in the forex market, as they provide opportunities for profit while also being relatively stable.