In trading, we can rely on a bunch of different entry signals.
Best currency pairs to trade
2023-08-15 • Updated
In this article, you’ll know which currency pairs are the most popular among traders, and what every trader should know about them.
EUR/USD: traders’ bestie
EUR/USD is the most traded pair in the Forex market for several reasons. First of all, the euro and the US dollar are the currencies of the two most powerful world regions. Almost every day, these countries publish their economic indicators which impact EUR/USD, some more, some less.
If Euro Area unveils data that is better than analysts’ forecasts, EUR/USD rises. If worse – EUR/USD falls. The same logic works for the US data. The better-than-expected US data will drive the USD up and EUR/USD down (as USD is a quote currency).
Besides, the EUR/USD pair may be driven by significant political news such as elections, trade agreements, and tensions between countries. The Federal Reserve and the European Central Bank are the major central banks, which interventions into the economy trigger big moves in the Forex market. To know how to trade on central banks’ decisions, read our article “How to trade on central bank decisions?”
USD/JPY: battle of two titans
Both the US dollar and the Japanese yen are safe-haven currencies. By the way, there are two types of currencies: risk (the AUD, the NZD, the GBP) and safe-haven (the USD, the JPY, and the CHF). Safe-haven assets tend to rise in times of economic instability and uncertainty, while risk currencies – in times of economic growth and prosperity. We must admit that USD/JPY is not as volatile as EUR/USD. The biggest liquidity is when European and USA market sessions overlap from 14:00 MT time (GMT+2) till 18:00 MT time (GMT+2).
GBP/USD, EUR/GBP: Your Highness pound
The British pound sterling (GBP) is the official currency of the United Kingdom. The GBP is the third most-traded currency after the USD and the EUR. Interesting fact: although the UK was an official part of the EU for some time, the UK has never switched to the euro.
As you may know, the GBP was hugely influenced by Brexit in 2020. The long and bumpy period of negotiations between the UK and the EU caused big swings of GBP/USD and EUR/GBP. Since the Brexit deal is over, GBP/USD has all chances to rally up to fresh highs.
USD/CAD: oil-dependent loonie
The main feature of the Canadian dollar is its high dependency on oil prices as Canada is one of the largest oil exporters in the world. The CAD tends to surge when oil prices are rising, and on the opposite, falling oil prices drive the CAD down. By the way, the Canadian dollar is also called ‘loonie’ because of the appearance of a loon (a North American bird) on the back of the Canadian dollar coin.
AUD/USD: sunny aussie
The Australian dollar is seen by many traders as a risk asset. It usually rises when the overall market sentiment is risk-on. That’s why the aussie (the short word for the AUD) positively correlates with stocks. Besides, Australia is closely connected with China due to the geographical location. Therefore, when China publishes some economic data, not only the Chinese yuan is influenced, but also the Australian dollar.
That’s it! Hope you’ve found something new and interesting for you! Use this knowledge to your advantage!
A triangle chart pattern is a consolidation pattern that involves an asset price moving within a gradually narrowing range.
Trading has several levels of complexity, starting from the easiest, like buying and selling random assets, to a more comprehensive one, with deliberate risk management, timing, and objectives.
How to open an FBS account?
Click the ‘Open account’ button on our website and proceed to the Personal Area. Before you can start trading, pass a profile verification. Confirm your email and phone number, get your ID verified. This procedure guarantees the safety of your funds and identity. Once you are done with all the checks, go to the preferred trading platform, and start trading.
How to start trading?
If you are 18+ years old, you can join FBS and begin your FX journey. To trade, you need a brokerage account and sufficient knowledge on how assets behave in the financial markets. Start with studying the basics with our free educational materials and creating an FBS account. You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed.
How to withdraw the money you earned with FBS?
The procedure is very straightforward. Go to the Withdrawal page on the website or the Finances section of the FBS Personal Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing. In case you funded the account via various methods, withdraw your profit via the same methods in the ratio according to the deposited sums.