Does a currency have a favourite matching pair?

Beginner Questions
1

For example…

Specifically during Economic News Events for a currency … such as USD Non-Farm, this event will always cause a big movement in price on all pairs that include USD…

BUT…

For the USD, is there a currency match/favourite that on average provides greater a Pip movement…?

i.e. EUR/USD or GBP/USD or USD/CAD

Is it the case that a particular currency will have a proven matching pair that always causes bigger price movements?

2nd example… NZD economic events… is it that the NZD will historically cause bigger Pip movements against the AUSD or the USD or in fact any other currency?

If it is the case that a currency has it’s best matching pair… then is there a source/link where I can see what those best matches are for each currency?

Hope that makes sense… many thanks all in advance.

2

Good question, always good to maximise the power of your capital.

However - number of pips moved - are you sure is this does not lead you into greater exposure with different pairs and therefore greater risk?

3

Thanks… but not sure what you mean?

If Non Farm on EUR/USD goes 50 Pips… but only 40 Pips on say GBP/USD … then if that’s the regular rough difference, i.e. that there are always more Pips to be had on the EUR/USD then that’s what I want to focus on to work out the average Pips over time.

1 Like
4

Well, coming at it from the opposite direction might be clearer. There are different numbers of pips in each pair, so if you always aim for a 50-pip return and always have a “stake” of $1 per pip across all pairs, you will be seriously under-performing with some of them.
e.g. There are 11,200 pips in EUR/USD at price 1.1200. There are 13,470 pips in USD/CAD at price 1.3470. A difference of 20%, enough to be significant. So a movement of 50 pips on one is not the same as 50 pips on another. A stake of $1 on EUR/USD as opposed to USD/CAD should actually be $1.20 for the same effective use of capital.

5

Removing the Margin element… Having had no replies from anybody that would indicate such data has been collected/observed then I assume that it’s just me that has raised the question then?

6

Lately I’ve been trading EUR/JPY and GBP/JPY, but I don’t know whether I can say they’re my favourite.

7

Sounds like your asking about currency correlation.
There are lots of correlation tables available online. Try this one
www.myfxbook.com/en/forex-market/correlation

8

GBPUSD,XAUUSD and USOIL are a big movement.

9

at that point is there a source/connect where I can perceive what those best matches are for every cash?

Sounds like your getting some information about cash relationship.

There are bunches of relationship tables accessible on the web.

10

Thanks… But I don’t think from what I’ve looked at after that it’s correlation charts that I am looking for… not just which pairs will move in the same direction… but which pairs cause the biggest move.

Here’s my example gain put in a simpler way…

US Non Farm data is released… it causes a big price movement on all pairs that include the USD… my question is of which of the pairs that include USD (GBP/USD or EUR/USD etc) does the price caused the biggest movement in Pips? … and is there a chart that says for example… any US data will cause the biggest movement against a specific currency etc?

11

I don’t know about favourite matching pairs, some currencies are just more popular than others?

12

Look at the usdx (us dollar index) correlation

The higher the correlation between the USDX and any USD pair, the bigger an impact USD releases will have on that pair.

Good luck to you

13

I think it’s eithier GBP/USD or EUR/USD, something tells me definitely it’s not australian, canadian, new zealand or singaporian currency at all. So something like that from my experience , please post some of yours really. I have like 5 years old or more experience in this.

14

Thanks… but for each currency I am wanting to know if there is a specific pair that over time has proven to cause bigger % in price moves. For sure… the USD is most probably going to move most against the EUR or GBP… but for example… the NZD… does that move most against the USD or the USD or the JPY etc.

For each currency, does it have a proven pair where the biggest moves can be seen?