Best Currency crosses to trade

Hey people…my favorite Currency Pairs are EUR/USD and GBP/USD yet they are positively correlated so i thought of getting into crosses so i was wondering what your ideas are on the best Currency crosses and why you think they are the best

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Hellooo. :blush: Haha. That’s an interesting question. :smiley: Hmm. :thinking: I wouldn’t say it’s the “best best” but, NZDCAD is the pair I often trade. I use 4H and the daily but the trades usually don’t take too long to execute. :blush: Are you looking at any particular crosses right now?

Oh, that is an interesting take. Is the volatility on NZDCAD better than the “popular” one?

By “popular” one, would you be referring to EUR/JPY? :blush: Or are you referring to the majors? :smiley: Tbh, I personally trade when NZDCAD pip movement is at average values instead of high volatility.

There are many correlation meters to find.

It thinks it’s a fundamental matter.

Not really i so new to forex so i just wanted to seek suggestions so i look through and see what works for me

EUR/USD & GBP/USD My favorite pairs

I can think of two approaches to determine favorable crosses.

  1. Fundamentals - understanding the trading profiles for specific countries and determining favorable currency pairs based on their trade partners and session times. For e.g. Japan has a ton of trade with the US, GB & EU, hence GBP/JPY & EUR/JPY. It has also been popular for carry trades with high yield currencies so you can also take into account AUD/JPY & NZD/JPY. They don’t all trade as much during the entire day though, which you’ve got to be mindful of. GBP/JPY is popular in all 3 US, GB & JP sessions but others trade more during specific sessions.

  2. Liquidity of currency pairs - You can also decide to simplify it by trading the most liquid crosses as explained here. Higher liquidity = greater volume and hence factors in lower spreads and infrequent slippage. The article explains it in more detail. Below is a chart from the same article.

I don’t really have a favourite pair. I just look for opportunity

Same. Although I do have a shortlist of pairs I’d frequently check and then go from there.

this is really the right approach to work, you still need to look at the possibilities and the situation

For me, it has always been EURUSD because of its volatility, and I'm starting to like JPYUSD as well because the spreads in it tend to average at 0.1 for the last few days.