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Top Currency Pairs You Could Trade in 2022

Before diving fully into the fast-paced world of forex trading, one will need to understand the most commonly traded currency pairings. Here are five of the most widely traded currency pairings in forex.

  • EUR/USD

The EUR/USD currency pair has a negative correlation with the USD/CHF currency pair and a positive correlation with the GBP/USD currency pair. This is owing to the euro’s, British pound’s, and Swiss franc’s positive correlation.

  • GBP/USD

The GBP/USD pair has a positive connection with the EUR/USD and a negative correlation with the USD/CHF. This is because the British pound, Swiss franc, and euro all have a positive correlation.

  • USD/JPY

The USD/JPY has generally been the second most commonly traded pair. Political tensions between the United States and the Far East have been a source of concern for this pair. Because the US dollar is the base currency in all three pairings, the pair tends to be favorably connected with USD/CHF and USD/CAD.

  • USD/CNY

The USD/CNY currency pair symbolizes the exchange rate between the US dollar and the Chinese renminbi, also known as the yuan. It has accounted for around 4% of daily FX trades in recent years.

  • USD/CAD

Because the US dollar is the quote currency in these other pairs, the USD/CAD currency pair has a negative correlation with the AUD/USD, GBP/USD, and EUR/USD currency pairs.

It’s important to remember that the ideal forex pairs to trade rely on a variety of criteria, including the trader’s preferred time of day, whether they want to make a long-term possible investment for higher earnings or are content to scalp possible smaller profits numerous times per day. A trader’s understanding of currency, forex markets, and worldwide economies is also crucial. Forex trading has the potential to generate a sizable profit or loss, but it takes patience and ongoing research.

Risk Warning

 This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. Trust Capital TC Ltd does not take into account your personal investment objectives or financial situation. Trust Capital TC Ltd makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast, or other information supplied by an employee of Trust Capital TC Ltd, a third party or otherwise.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83.33% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Trust Capital TC does not offer Contracts for Difference to residents of certain jurisdictions including the USA, Iran, and North Korea. Please consider our “Risk Disclosure“.

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