Major Currency Pairs

Major Currency Pairs

When it comes to Forex or currency trading, there are several currency options that traders get. The traders see the currencies as pairs, which they could consider exchanging for assured profits. Some of them are efficient enough to yield profits while some pairs are disappointing. Those currency pairs that are most popular among traders and grab most of the attention are major currency pairs.

There are four major currency pairs in Forex trading. The most common is EUR/USD, which is the abbreviated form of the Euro and the USA dollar. The second and third is the USD/JPY and GBP/USD respectively. The fourth major currency pair is the USD/CHF, the latter abbreviation being used for the Swiss Franc.

Why Are Above Currency Pairs Considered Major?

America and the European Union are the two most economically stable nations, which makes the currencies of both the countries world’s first and the second most popular currency. Hence, the pair of US dollar and EURO is most actively traded in the industry.

The USD/JPY is the next major currency pair given to Japan being the largest economy in Asia. The country is one of the major exporters in the world and hence exchanging Japanese Yen is quite active in Forex trading.

The Great Britain Pound has a vital role to play as far as international financial markets are concerned. This makes it quite likely for traders to pair it against the US dollars. The USD/CHF is yet again the major pair as Switzerland, to which the latter currency belongs, is considered as the most stable and safe nation all across the globe.

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