EUR/USD
- Country: Eurozone / USA
- Pairs that correlate: EUR/CAD, EUR/AUD, NZD/USD
The EUR/USD is the most traded currency pair in the world, accounting for nearly 30% of the total daily volume in FX. This sheer volume makes it incredibly liquid. EUR/USD is highly sensitive to fundamental news announcements released by the U.S., and due to its popularity, traders can access a wealth of analytical information.
GBP/USD
- Country: United Kingdom / USA
- Pairs that correlate: GBP/NZD, GBP/CAD, GBP/AUD
Also known as “cable,” GBP/USD is the third most traded pair. Price movements in cable are known to correlate with EUR/USD. Since the pair isn’t as liquid
as the EUR/USD, GBP/USD experiences more aggressive price movements when U.S. data is released. The UK boasts the second largest economy in the eurozone, after Germany.
USD/JPY
- Country: USA / Japan
- Pairs that correlate: NZD/JPY, CAD/JPY, EUR/JPY
The USD/JPY is one of the major pair types and is the second most traded pair in the world. Japan has the third largest GDP after the United States and
China. Since Japan’s economy is driven by its exports, the country prefers a weak yen to increase international sales.
USD/CHF
- Country: USA / Switzerland
- Pairs that correlate: USD/SGD, AUD/CHF, USD/TRY
The Swiss franc became a safe-haven currency in times of crises due to Switzerland’s history of remaining neutral in times of war. The franc remains a safe haven currency and spikes in price can be seen during geopolitical crises.
USD/CAD
- Country: USA / Canada
- Pairs that correlate: USD/SGD, AUD/CHF, USD/TRY
Canada’s economy is heavily dependent on exporting raw materials. As a result, the CAD’s strength correlates with the price of oil.
AUD/USD
- Country: Australia / USA
- Pairs that correlate: AUD/CAD, AUD/CHF, GBP/USD
The AUD/USD is considered one of the three most popular commodity pairs. Price action in this commodity pair is influenced by the price of Australia’s
natural resources. In particular, the price of gold is known to correlate closely with AUD/USD.
NZD/USD
- Country: New Zealand / USA
- Pairs that correlate: EUR/USD, NZD/JPY, AUD/JPY
New Zealand’s economy is heavily dependent on exporting raw materials. As a result, the NZD’s strength correlates with the price of gold.
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