Major currency pairs and symbols of the forex market
Unlike the general public's thinking, the forex market is not only related to the trading of different countries' currencies (currency pairs), but due to the existence of countless brokers and brokerages in the forex market, it is possible to trade in various markets such as cryptocurrency, metals, stocks, energy, etc. Therefore, there are many symbols for trading in the forex market, but some currency pairs and symbols are traded more in forex and have many fans and enthusiasts.
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Forex major currency pairs
In the forex market, the currency pairs in which one side is the US dollar and most traded in forex are called the major currency pairs. For example, the European Euro to US Dollar (EURUSD) currency pair is a major currency pair.
Further, we will introduce the most important and most traded currency pairs in the forex market.
EURUSD in Forex
The European Union Euro to US Dollar currency pair EURUSD is the most important, prominent, and popular currency pair of the forex market , and many traders & investors trade this currency pair. This currency pair accounts for 25% of all trades in the forex market. This currency pair's popularity and high trading volume are because the US and the European Union's economies are big globally. Therefore, a reliable fundamental analysis can be done on this currency pair. This currency pair's high trading volume makes it very liquid, creates many trading opportunities for traders, and minimizes this symbol's spread. It is worth mentioning that the EURUSD spread is zero in Trendo broker.
In addition to technical factors, for EURUSD currency pair transactions, one should pay attention to the economic situation of the EU and the US and analyze their important news, such as interest rates, inflation, and other economic factors in the economic calendar. The better the economic state of the EU is, the price of this currency pair will increase, and the better the US economic state is, this currency pair's price will decrease because it is the second side of the currency.
Because it has very high liquidity, the EURUSD currency pair can be analyzed both technically and creates good trading opportunities, and considering the economic size of these two points, it can be analyzed fundamentally, and in terms of spreads, the commission and price fluctuations are very suitable for trading.
GBPUSD in the forex market
The British pound to the US dollar currency pair accounts for about 11% of the forex market trades. Fluctuations in this currency pair depend on the US and England's economic situation. Since the pound's economic and political situation is continuously changing and is not stable, the pound's value in the forex market is constantly changing and has many fluctuations. On the other hand, the US dollar also causes good fluctuations in its value due to high trades. Therefore, the GBPUSD currency pair is one of the most volatile currency pairs in the forex market, which creates good trading opportunities and, as a result, attracts the traders' attention.
In addition to technical factors, for GBPUSD currency pair transactions, one should pay attention to the economic situation of the UK and the US and analyze the important news of these two countries, such as interest rates, inflation, and other economic factors in the economic calendar. The better the economic state of England is, the price of this currency pair will increase, and the better the US economic state is, the price of this currency pair will decrease because it is the second side of the currency.
USDJPY in the forex market
Since Japan has a low-interest rate and is usually a fixed amount , and its economy is moving with certain stability and order, its currency (JPY) has become a safe asset, and that is why it is of interest to traders. The USDJPY currency pair is popular among traders and performs logical and predictable fluctuations that create excellent trading opportunities both technically and fundamentally.
For USDJPY transactions, you should pay special attention to the economy and news of the US economic calendar. And because the Japanese economy is usually stable and under the influence of Japan's economic calendar and fundamental news, this currency pair fluctuates less unless there is a specific change in the monetary policies of Japan's Central Bank. For Japan's fundamental news, one should pay more attention to the meetings of this country's central bank, and no need to pay attention to other fundamental data such as employment and unemployment rates in Japan.
XAUUSD in the forex market
One of the most favored symbols traders trade in Forex market brokers is the symbol of gold or the global ounce (XAUUSD). Gold is popular in the forex market for the following reasons and has become one of the most traded symbols.
High trading volume: since global gold is a safe asset and a consumer and decorative item, and many financial institutions and companies buy & sell, and trade this metal, the transaction liquidity in the financial markets is very high.
High analytical capacity technically: considering that technical analysis rules can be applied well to the gold price chart, many technicalists are interested in the gold chart for profitable trades.
High analytical capacity fundamentally: global gold reacts well to the world's political and economic events. For example, in times of global problems such as war and the coronavirus, it is in demand as a safe asset and has a good price rise, and in times of global peace and good economic situation, the price of gold decreases.
On the other hand, XAUUSD is very dependent on the US economic state because it is traded based on dollars. Therefore, whenever the US dollar state is analyzed fundamentally, gold's short-term and mid-term price direction is determined. Therefore, in gold trades, one should pay attention to the UDS important news in the economic calendar. If the dollar is fundamentally strong, gold will fall, and if the dollar's value weakens, the price of gold will rise.
Suitable price fluctuations during the day: Global gold performs a good price fluctuation during the day and creates profitable trading opportunities, and with capital management, one can make good gold trades in forex.
Dow Jones and Nasdaq in the forex market
DOW JONES is an industrial average of the US stock market index, aka DJI or US30, and it determines the stock price fluctuations of 30 companies operating in the United States. On the other hand, Nasdaq shows the average shares of 100 leading non-financial companies in the technology field and is traded as NDX or US100 symbols in forex brokers.
The Dow Jones and Nasdaq indices are the two symbols that usually have the most price fluctuations during the day in the forex market, which is why many traders are interested in this high volatility and create good trading opportunities in these two symbols. Also, these two indices are very dependent on the US dollar's important news in the economic calendar, and with the news release, they make good fluctuations. Therefore, trading these two symbols is recommended for traders who like high volatility.
Bitcoin in the forex market
The cryptocurrency which many people have recently become interested in and the most popular, reliable, and important cryptocurrency is Bitcoin. Another reason for the popularity of cryptocurrency for traders is that there is no time limit for trading, meaning cryptocurrencies are tradable 24 hours every day of a year without a break. Also, Bitcoin makes good fluctuations for trading during the day and week, which traders can pay attention to as a trading opportunity.
Another notable point is that Bitcoin is not very dependent on the economic calendar's fundamental news, meaning there is no need to check the economic calendar news for Bitcoin trades, but the US dollar's most important news, such as the Federal Reserve monetary policy and the US interest rate, must be checked in Bitcoin transactions.
Oil in the forex market
Oil is one of the world's major assets, which most of the country's economy depends on, also known as black gold. Trading oil in the forex market is widespread for reasons such as good fluctuations to create profitable trading opportunities and because oil is influenced by fundamental and world news. Oil traders must pay attention to the global news and speeches about energy, such as the OPEC meetings and the world's industrial state because oil movements are affected by global events. The oil symbol in forex brokers is usually Brent oil (BRENT) and West Texas Intermediate (WTI) or (CRUDE OIL) .
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