Forex Basics

What are the most popular forex pairs to trade?

A look at the most popular and most liquid currency pairs in the forex market.

Berto

Dec 1, 2023 — 2 min read

Popular Currency Pairs

There are a total of 7 major currency pairs; all of them involve the US Dollar.

Some currency pairs are more liquid than others. It also means that highly liquid forex pairs are generally more heavily traded.

Below you will find information on the most popular currency pairs with the highest trading volumes:

Majors

Major forex pairs are the most heavily traded and most liquid currency pairs in the forex market.

EUR/USD
USD/JPY
GBP/USD
USD/CHF

EUR/USD

The EUR/USD (Euro/US Dollar) is the most traded pair on the market. The Euro and the US Dollar represent the two largest economies in the world, the US Economy and the European Union.

USD/JPY

The USD/JPY (US Dollar/Japanese Yen) is the second most traded currency pair by volume. The Yen is also known as a safe-haven currency amongst traders.

GBP/USD
The GBP/USD (Great British Pound/US Dollar), nicknamed ‘Cable’, is the third most traded currency pair by volume and shares similarities with the EUR/USD. Both currency pairs are highly correlated because the United Kingdom’s economy is tied to the European Union.

USD/CHF
The USD/CHF (US Dollar/Swiss Franc) is the fourth most traded pair. The Swiss Franc’s safe-haven reputation contributes to its popularity. Traders bid up the Swiss Franc when risk/volatility enters the market because the Swiss economy is perceived to be less risky.

Commodity Majors

Commodity currencies are forex pairs that are greatly influenced by commodity prices.

AUD/USD
NZD/USD
USD/CAD

AUD/USD
The AUD/USD (Australian Dollar/US Dollar), or ‘Aussie’, is greatly affected by mining commodities, farming of beef, wool and wheat. The Aussie also tends to do well when China does well because the two countries are big trading partners. The Reserve Bank of Australia (RBA) also has a major influence over the AUD/USD.

NZD/USD
The NZD/USD (New Zealand Dollar/US Dollar), also known as the ‘Kiwi’, is heavily influenced by data releases on agriculture and tourism.

As with all currencies, New Zealand’s central banks (Federal Reserve and Reserve Bank of New Zealand) shouldn’t be underestimated. Changes to monetary policy from them can lead to NZD/USD volatility.

USD/CAD
The USD/CAD (US Dollar/Canadian Dollar) or ‘Loonie’ is also heavily affected by oil, timber and natural gas. Interestingly, the Canadian dollar is closely tied to the US economy.

Most traded forex pairs in the world?

According to the Bank of International Settlements (BIS) triennial survey, the most traded pairs in the world are: