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The Most Volatile Forex Pairs and How to Trade Them

The best currency pairs are characterized by higher liquidity, which leads to tighter spreads, as well as significant daily price fluctuations. The use of their potential is possible thanks to the Forex currency market, which operates 5 days a week and is characterized by the highest liquidity. It allows you to carry out operations on the most popular currency pairs and much more. Hundreds of billions of dollars are traded here every day.

So the question is, what are the best Forex currency pairs to trade? The answer to this question is not so simple. It takes some time to analyze the different Forex currencies that will suit our strategy. There is plenty to choose from, given the fact that there are at least 180 currencies in the world economy. Their size may surprise you, but the truth is that only a few of them get the attention of investors.

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What are Currency Pairs?

The Forex market (Forex currency exchange) was created for the needs of large financial institutions to make Forex currency exchange more convenient. It is one of the leading financial markets in the world, reflecting the dynamics of trade. It’s all about exchanging one, not necessarily the most popular forex currency pair, for another. Otherwise, it is buying or selling one Forex currency for another.

The famous saying “Money never sleeps” coined by the Hollywood director “Wall Street” perfectly describes this market. Regardless of the time of day, the Forex market should be active all the time.

In order to buy and sell the most popular forex currency pair and not only this one, we need to know how many units of one currency are needed to be able to exchange it for one unit of another currency. This ratio defines what a currency pair is. All Forex currency pairs are written as two currency abbreviations, i.e. base currency and quote currency.

This is a code or abbreviation that describes the international setting of the currency pair. For example, 1.13 EUR/USD means that one euro is worth 1.13 USD. Of course, Forex quotes have values ​​up to 5 decimal places. Back on topic, in the case of EUR/USD, the base currency is the euro and the quoted currency is the dollar. Therefore, every currency pair, not just the most popular forex currency pairs, is quoted on the foreign exchange market all over the world.

Is the Most Popular Currency Pair One of the Major Currency Pairs?

What makes the best Forex currency pairs different from others? How to determine the main currency pairs? The most popular Forex currency pairs in the world are also the strongest currencies, i.e. the Euro and the US Dollar. The reason for this is the size of both economies. The US dollar is the currency of choice for any currency exchange or payment for goods. It is also the dominant reserve currency of central banks. The chart below confirms its dominance on a global scale. It represents the percentage share of world foreign exchange reserves for the second quarter of 2019.

The most popular currency pairs below may not necessarily be the best currency pairs. However, they are definitely called the most liquid Forex currency pairs. In addition, most transactions on the Forex market take place on the following pairs:

  • EUR / USD (Euro – US Dollar);
  • USD / JPY (US Dollar – Japanese Yen);
  • GBP / USD (pound sterling – US dollar);
  • AUD / USD (Australian dollar – US dollar);
  • USD / CHF (US dollar – Swiss franc);
  • USD / CAD (US dollar – Canadian dollar).

The value of the most popular currency pairs changes frequently, and the trading volume also changes every minute. These Forex currencies belong to highly developed countries and are therefore the most liquid currencies in the world.

Does this mean that these most popular Forex currency pairs are the best? Not necessarily, because participants of the foreign exchange market can both earn and lose on certain currency pairs.

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The above-mentioned most popular currency pairs have the best trading conditions, tighter spreads, but this does not mean that they are the best currency pairs. Find the best currency pair online with Forex trading platform metatrader 4 and metatrader 4.

Which Currency Pair is the Best to Trade?

In more than 200 countries of the world, you can find quite a lot of currency pairs for trading. However, all these currency pairs do not have the potential for long-term decline or rise, and this is a must when it comes to investing in currencies.

Before analyzing the best currency pairs, it is better to know the most popular currencies that we can find in the world of Forex. Here they are:


  • US dollar (USD);
  • Euro;
  • Australian dollar (AUD);
  • Swiss Franc (CHF);
  • Canadian dollar (CAD);
  • Japanese yen (JPY);
  • British Pound (GBP).


The most popular or important world currencies are listed above. If you want to succeed in the forex market, you need to learn more about trading. If you choose the most popular currency pairs for trading, that is, those that consist of the currencies listed above, trading will become easier. Now you know what the main currencies are and, in general, what instruments the foreign exchange market offers.

Trade on the Most Popular Currency Pair EUR/USD

The EUR/USD currency pair is the most popular among Forex traders. None of the other most popular currency pairs match in terms of liquidity. This is evidenced by a low spread, i.e. the difference between the purchase price and the sale price. This makes EURUSD an ideal target for both long-term and short-term investors.

Unlike the rate changes of other currency pairs, the EUR/USD rate fluctuates smoothly from time to time in a normal market environment. The essence of liquidity means fewer breakouts up or down or short-term price gaps.

Of course, this phenomenon also occurs with the EUR / USD pair, but sudden changes in the direction of the rate occur almost exclusively due to the breakthrough of important technical resistance or support levels, or when important financial information appears in the media.

Planning a trade based on technical analysis of EUR/USD support and resistance levels can be difficult and requires extreme patience, as the pair can test levels for several tens of minutes and even several hours.

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Ifiokobong Ibanga

Ifiokobong Ibanga is the founder of InfoGuideNIgeria.com. You can get in touch with him on Instagram @ifiokobong. If you need a personal assistance on this topic, kindly send a message. Much Love!

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