Highly Preferred Currency Pairs in the Trading World  

Juliet D'cruz

Updated on:

Highly Preferred Currency Pairs in the Trading World

Forex offers traders opportunities to trade in currencies. Traders need to understand the aspects of Forex trading to place their stakes rationally. Forex trading involves using currency pairs like EUR/USD, USD/CAD, USD/CHF, etc. In these pairs, one currency is the quote currency, and the other is the base currency. 

Certain currency pairs have a high preference from traders and investors around the globe. They offer higher liquidity, i.e., ease of trading for traders and investors. After making a comprehensive assessment, placing the stakes with the same may deliver favorable outcomes to traders and investors. Moreover, traders must consider several things before investing in any currency. 


EUR/USD is one of the most preferred currency pairs for their potential. Last year the euro reached its lowest limit within 20 years and reached parity with the dollar. The market’s bearish trend did provide traders opportunities to make their trading decisions on the fall of price. It is doubtful that the same trend will continue, and the market may go bullish. Several reasons support this anticipation and may deliver favorable outcomes to traders. However, such ideas can not be trusted blindly, and traders should look for other aspects before making any financial decision based on the same. 


To trade  the USD/CAD currency pair, traders need to look closer at what is happening on the south side of the U.S.-Canada border than what might be happening in the Great White North. These are considered one of the most promising currency pairs for their spreads, which is favorable for traders and investors. Traders must make a more thorough assessment before deciding to place or not to place their stakes in this currency pair. The same will provide them with the insight to have a better decision-making process. 


The Swiss franc is considered a haven for traders when times are tough; it can be a phase of global meltdown or an economic recession. USD/CHF is one of the most liquid pairs with high preference by traders and investors. The correct decision for a trader regarding investing in the same will depend on changes and policies made or changed by the Swiss National Bank. However, before significant inflation prevailed for a couple of years, the franc attempted to limit the appreciation to make their exports more compelling. Last year’s bear market compelled policymakers to reverse this policy. This institution may take some unprecedented moves to support the economy. Hence, it makes it difficult for traders and investors to decide the same. Blindly placing the stakes based on a one-dimensional assessment is unfavorable for traders and investors. Traders can wait for turmoil to take its course to have a safer trading experience and should decide to see the public expectations further. 


You should look for the activities of policymakers to have a detailed understanding of their behavior in the market. The same enables you to have a better decision-making process. To have a better trading strategy, closely examining such activities is essential. The Bank of Japan has taken several measures to support the economy, which could depreciate the yen. However, the currency is also driven by public behavior. Trading in USD/JPY pairs may deliver traders opportunities that may facilitate favorable outcomes. Enormous trading volumes of USD/JPY are also essential factors in their favor. Traders should look for market conditions before deciding whether to trade or not in any pair. 

Concluding Remarks

Forex is a market that facilitates trading opportunities for traders and investors willing to trade  currencies. Currency pairs are two currencies expressing their value relative to one another. A few currency pairs have a high preference of traders and investors for their potential to deliver favorable outcomes and the safety factor they exhibit. A trader willing to buy forex online should choose a regulated platform for an unparalleled trading experience. While choosing forex brokers, traders must see the advancement they offer for a better experience. Trading involves risk and can result in losses exceeding deposits. It is essential to ensure traders understand the risks and manage their exposure. 

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