The most popular currency pair in forex market is EURUSD. According to many successful traders having a favorite currency pair is not a good idea. Do you have a favorite currency pair and why?
No, you should not. As a trader you care about price movements and being on the profitable side of the trade. Having favorites means you are getting attached to your trades which is an emotional disaster and often leads to unnecessary losses.
I agree with the bear and op. Although when I first started I found it easier to trade 1 pair. Some traders say in the beginning you may find it easier to understand if you use the pair where you live matched to a major. For example USDCAD. Generally speaking we follow US but I donāt think that reason is so strong that you would be successful over the long term doing it that way. Like I say I started with one, now I look for the best opportunity among all the pairs
When I was a newbie I found it easier to concentrate my analyses and focus on one pair. After a while I saw correlations and recurring price reactions on other currency pairs that were just too good to waste.
As long as you donāt go crazy with trading a bazillion pairs and you can keep track of your risk exposure thereās nothing wrong with trading multiple pairs at a time.
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The idea is to make money.
I tend to look at a pairs liquidity and manipulation and of course whether its most liquid periods (earning potential) are within the hours I wish to trade. E.g. EUR/USD is liquid but manipulated hugely by the ECB and market makers and does not bode well for a new trader.
USD/JPY is complex and because I live in the UK I am usually asleep when this session is moving. Also there are times in the year when this currency by default moves in certain direction so fundamentals are necessary to learn. Again it is a pair that is regularly intervened on by the BOJ.
GBP/USD is the most stable immune it appears to FED manipulation and the BOE rarely intervenes. It makes me money so I stick with it for intraday.
I am of a contrary opinion. I think it all depends on the traderās system esp for those that run automated systems. Run you annual statistics and all over sudden, you will have a few favorites.
And yeah, the GBPUSD rules for me 
Agree with Grix here. I also love Cable and other pairs like AU & EU
its better to concentrate on price movments and market in general, when u have your analysed statistics u may see if u really have a favorite couple:)
its really depends i like to keep a certain currency pair in check like AUDJPY coz i do place some trades there fro time to time, most commonly used pairs are mostly majors or the EURUSD coz its the most studied and most known.so it really depends if you are more a techi or funda type of trader i guess
Maybe its not a good idea to have favorites but any experienced trader will prefer trading some pairs over othersā¦ and should know the pairs they trade well. For example cable is extremely volatile and often unpredictable while EURJPY is more consistent and works well with technical analysts. EURUSD have very good spreads and are the two major currencies so its an obvious choice. Remember there are also correlations between pairsā¦ the USDCHF and the EURGBP have strong inverse correlation although the pairs are not directly overlapping.
Hello to the OP! Great questionā¦
I agree with most of what has already been saidā¦
EUR/USD is a nightmare for newbies, because the LONG-TERM looks bullish from a technical perspective, but
the real economy in Europe is not in a good way, and there are a lot of uncertainties about which way the ECB
is going to goā¦
The US Dollar is also going through an uncertain phase, with economic data showing sometimes a pick in jobs here,
sometimes a slowing down in home sales thereā¦ and then there is āThe Taperā, which has put investors in a pickle:
is the US going to return to a āsafe havenā status, and what will that mean for the US Dollar? When will Yellen raise
interest rates? What will that do to the EUR/USD?
Apart from that, you must also think about how much TIME YOU HAVE: if all you do is sit in front of the trading screen
and keep an eye on forty pairs every day, filling stat sheets and making updates to your levels on the charts, then the
sky is your limitā¦ If you have a full-time job that is NOT trading or financial investment, then you may need to keep
it real and limit yourself to trading only a few pairs at the time, and ACCEPT that YOU MAY LOSE OUT on fantastic tradesā¦
You just cannot keep an eye on all pairs at all timesā¦ Somewhere, sometime, there will be an amazing rally and you
will just not be ready for itā¦ You may not even have put in an automatic (entry) order for it, because it just was not
part of your analysis for that pairā¦ So what? There will always be another rally, somewhere, sometimeā¦
The other thing that a newbie could do would be to trade currency baskets, e.g. the USD basket, but this may be a
little expensive if you did not handle it properly, as currency correlation could mean doubling, tripling, quadrupling (etc.)
your losses as well as your gainsā¦
Personally I trade any combination of Euro, Yen, Pound, Dollars (Aussie, US, New Zealand, and Canadian), and Swiss Franc
known to man or womanā¦ as long as I can get pips, I will get my hands dirty, thank you very much!
Cheers
As I said I look for the best opportunity, by my sentimental favorite is GBPUSD anyway hereās a tool that I found interesting and have started using in my analysis Currency Index :: Dukascopy Bank SA | Swiss Forex Bank | ECN Broker | Managed accounts | Swiss FX trading platform
Yes GP00 currency indexās are quite good or matrix.
Indeed Pipme the USD is well managed currency in terms of staying cheap and Euro is well managed currency in terms of strength by the ECB so you are always swimming against the tide and end up with this long bias. The FED is still a private institution and acts for its shareholders and in fact has really hijacked the role of central bank as the US Govt. has no real mandate over it. The ECB also has very little power over member states and is really a political animal that wants to save the United States of Europe at all costs and the EURO is the key.
No doubt it will fail in the future, the EURO will fail and in a spectacular manner simply because it is a peg and no peg has ever survived. So every conspiracy theorist will short this pair on every 100 pip climb only to see it climb another 100 pips but dare I say one day the Euro will reach that golden 1.5000 and beyond and thenā¦
Letās just say someone is about to become the next George Sorosā¦
In my good opinion the answer is yes. My favorite currency pairs to trade are EURUSD and GBPUSD. But of course u shouldnāt be bias towards them and trade only at opportunities. Its beneficial and makes you pro on that favorite currency pair because you learn a lot about price action of that currency pair.
I trade over twenty pairs, Iām a technical trader and a chartās a chart. But as ever with trading the answer will be different for different people so for this sort of question all we can ever offer is personal opinion. No one will ever receive enough replies to gain a useful opinion. So itās just a collection of unrelated opinions, some of them (incorrectly) presented as irrefutable fact.
I think you should not have one favour pair, but you could have few favour pairs, and you can always change your favourites under different circumstances.
Great point Simon.
I think for me my understanding of the manipulation of the currency market keeps away from certain pairs precisely because many a capital have been wiped on these pairs. Also most of these pairs donāt react to chart technicalās all the time. For example USD/JPY in the Japanese tend to bill their clients in USD and make all the conversions back to Yen at a particular point in the year (I think March, I have to look it up again) this means at this point there is a lot of Yen buying and USD selling as the conversion happens. Also the Japanese Yen is hugely affected by Oil prices as they are one of the largest importers of energy so any movements in Oil tend to affect them hugely.
I could go onā¦
Cable is free of all this non-sense and reacts only to economic data (GDP, CPI, etc) as a result even technicalās will be reliable as all buying and selling would come only in anticipation of fundamental moves. USD reacts always to money flow so as a result I canāt think of better pair to give me peace of mind.