Which Currencies Should Be Your Focus?

The following are the eight major currencies:

  1. U.S. dollar (USD)
  2. Euro (EUR)
  3. British pound (GBP)
  4. Japanese yen (JPY)
  5. Swiss franc (CHF)
  6. Canadian dollar (CAD)
  7. Australian dollar (AUD)
  8. New Zealand dollar (NZD)

This is just a sample of some of the more liquid derivatives based on the currencies above:

  1. EUR/USD
  2. USD/JPY
  3. AUD/USD
  4. GBP/JPY
  5. EUR/CHF
  6. CHF/JPY

As you can see from these lists, the currencies that we can easily trade span the entire globe. This means that you can handpick the currencies and economic releases to which you pay particular attention. But, as a general rule, since the U.S. dollar is on the “other side” of 90% of all currency trades, U.S. economic releases tend to have the most pronounced impact on the market.

Perhaps I would like to have the US $ and the Euro for my trading :slight_smile:

ummm I think you are missing the USD/CHF and GBP/USD. They are part of the 4 majors :slight_smile:

I think the GBP/USD is the best pair to trade.

http://www.crnindia.com/currency/currency_daily.html

Here one can also find the trend of dollar against all other active currencies.

I also love the GBP/USD because of it’s liquidity and the size of the moves it makes. The 2 - 4 pip spread (Oanda) is not a problem at all because it can move 80 pips in the blink of an eye.

I agree. This is my primary trading currency because of its potential daily large move. You can also take a look at this currency’s daily ATR value which is > 100 pips. My only hurdle with this pair is that I can’t be awake at 3AM when london session opens.

Euro/Us dollar work great when placed next to the oil movement…this is why it’s my favorite currency