Best Currency Pairs to Make More Profit in Forex without Losing so Much

EUR/USD (Euro/US Dollar)

The EUR/USD pair is the most actively traded currency pair in the Forex market.

It offers high liquidity and tight spreads, making it a favorite among traders.

The Euro and the US Dollar are influenced by various economic factors, including interest rates, inflation, and political stability.

This pair is ideal for both short-term and long-term trading strategies, providing ample opportunities for profit.

USD/JPY (US Dollar/Japanese Yen)

The USD/JPY pair is known for its strong liquidity and volatility.

It is influenced by economic indicators from both the United States and Japan, such as GDP growth, employment data, and monetary policy decisions.

Traders often take advantage of the price movements in this pair to make profitable trades, especially during the Asian and U.S. trading sessions.

GBP/USD (British Pound/US Dollar)

The GBP/USD pair, also known as the “Cable,” is another popular choice among traders.

It exhibits significant volatility and offers numerous trading opportunities.

Economic events in the United Kingdom and the United States greatly impact this currency pair.

Traders closely monitor factors such as Brexit developments, economic data releases, and central bank decisions to identify profitable trading opportunities.

USD/CHF (US Dollar/Swiss Franc)

The USD/CHF pair is often referred to as the “Swissie.”

It is known for its strong correlation with the EUR/USD pair.

Traders often use this pair as against the Euro, taking advantage of its safe-haven status during times of market uncertainty.

Economic factors such as Swiss economic data, global risk sentiment, and monetary policy decisions influence the USD/CHF pair.

AUD/USD (Australian Dollar/US Dollar)

The AUD/USD pair is influenced by commodity prices, especially gold and other natural resources.

Australia is a major exporter of commodities, making the Australian Dollar sensitive to changes in global commodity markets.

Traders keen on trading commodity-based currencies can benefit from the price movements in this pair.

Additionally, economic data from Australia, such as employment figures and interest rate decisions, affect the AUD/USD pair.

USD/CAD (US Dollar/Canadian Dollar)

The USD/CAD pair is heavily influenced by oil prices due to Canada’s significant oil exports.

Traders often monitor oil prices to make informed decisions when trading this pair.

Additionally, economic indicators from both the United States and Canada, such as GDP growth, trade data, and central bank policies, impact the USD/CAD pair.

NZD/USD (New Zealand Dollar/US Dollar)

Similar to the AUD/USD pair, the NZD/USD pair is influenced by commodity prices, making it attractive to traders interested in commodity-based currencies.

Economic indicators from New Zealand and the United States, including dairy prices, employment figures, and interest rate decisions, also impact this pair.

Traders often look for opportunities based on the interplay between commodity prices and economic data releases.

EUR/JPY (Euro/Japanese Yen)

The EUR/JPY pair offers ample trading opportunities due to its high volatility.

Traders often benefit from the price movements in this pair by combining technical analysis with fundamental factors from both the Eurozone and Japan.

Economic events such as central bank decisions, GDP growth, and inflation rates can significantly influence the EUR/JPY pair.

GBP/JPY (British Pound/Japanese Yen)

The GBP/JPY pair exhibits significant volatility, making it an attractive choice for traders seeking higher potential returns.

Economic events from the United Kingdom and Japan greatly influence this pair. Traders closely monitor factors such as Brexit developments, economic indicators, and geopolitical events to identify profitable trading opportunities.

EUR/GBP (Euro/British Pound)

The EUR/GBP pair is often used by traders to speculate on the relative strength of the Euro against the British Pound.

It provides trading opportunities based on the economic factors affecting these two currencies.

Traders monitor factors such as interest rate differentials, economic data releases, and political developments to identify potential profit opportunities in the EUR/GBP pair.

FAQs On Best Currency Pairs to Make More Profit in Forex without Losing so Much

Here are some helpful frequently asked questions on Best Currency Pairs to Make More Profit in Forex without Losing so Much with their respective answers:

What is the most profitable currency pair in forex?

It is challenging to determine the most profitable currency pair in forex as profitability depends on various factors, including market conditions, trading strategies, and individual trader preferences.

Currency pairs like EUR/USD, GBP/USD, and USD/JPY are popular among traders due to their liquidity and volatility, which can provide ample trading opportunities.

However, profitability ultimately depends on a trader’s skill, knowledge, and ability to analyze the market effectively.

What pairs move 100 pips a day?

Currency pairs that can move 100 pips (or more) in a day are usually those with high volatility. While you have to note that not all days will see such significant movements, some pairs known for their potential to move 100 pips or more include:

GBP/JPY (British Pound/Japanese Yen)
GBP/USD (British Pound/US Dollar)
EUR/JPY (Euro/Japanese Yen)
USD/JPY (US Dollar/Japanese Yen)
AUD/JPY (Australian Dollar/Japanese Yen)

Which pair is best for forex trading?

The “best” currency pair for forex trading depends on various factors, including individual trading goals, risk tolerance, and trading strategies.

Some popular currency pairs that offer liquidity and volatility, making them attractive to traders, include:

EUR/USD (Euro/US Dollar)
GBP/USD (British Pound/US Dollar)
USD/JPY (US Dollar/Japanese Yen)
USD/CHF (US Dollar/Swiss Franc)
AUD/USD (Australian Dollar/US Dollar)

These pairs are widely traded and offer ample opportunities for profit.

Which Forex pair is always trending?

It is rare for any forex pair to be in a constant and uninterrupted trend.

Forex markets are influenced by various factors, including economic data, geopolitical events, and market sentiment, which can cause trends to change or reverse.

However, some currency pairs are known for their tendency to exhibit strong and prolonged trends at times. These pairs include: