Currencies – How The Various Types of Forex Pairs Are Moving Today

Currencies are traded against one another as ‘pairs’ via the forex market. You can find a range of the most important daily movers in the forex market on this page, along with the option to dig a little deeper into each market by selecting the relevant chart.

There are many forex pairs to trade, but not all are created equal, and nor do they come with the same trading conditions on forex broker platforms. This is in part due to liquidity, but volatility also has a major role to play.

Unsurprisingly, the global reserve currency, the USD, is very heavily traded against various other currencies. In forex, currency pairs are grouped into three main clusters; majors, minors, and exotics.

Each of the charts displays the 1 month, using 15 minute intervals.

Major Forex Pairs

Forex majors refer to the U.S. dollar paired with other major currencies such as the euro (EUR/USD), the Japanese yen (USD/JPY), and the British pound (GBP/USD). The other majors are Canadian Dollar, Australian Dollar, the Swiss Franc, and the New Zealand Dollar. The majors are the most traded currency pairs in the forex market.

Known for their high liquidity and low transaction costs, the majors are influenced by economic data, geopolitical events, and central bank policies, providing opportunities for both short-term speculation and long-term trading strategies.

Minor Currency Pairs

Forex minors are currency pairs that do not include the U.S. dollar but involve other major currencies like the euro, yen, swiss franc, Australian dollar, New Zealand dollar, or pound.

While the minors are less liquid than majors, there remain plenty of trading opportunities and liquidity. Traders who specialize in minors often benefit from greater volatility, which can lead to larger price swings and potentially higher profits, albeit with increased risk and fees.

Exotic Currency Pairs

Exotic pairs consist of one major currency paired with a currency not classified as a major. These could be developing nations, emerging economies, or even those that drive a global powerhouse. The ZAR, INR, HKG, SEK, MYR, are all examples of ‘exotics’ when paired with a ‘major’.

Due to the range of options, it is harder to generalise, however these pairs tend to have lower liquidity and higher transaction costs compared to majors and minors. They can be influenced by unique factors like political stability, regional economic conditions, and commodity prices. Exotic pairs are considered higher-risk and are typically traded by experienced investors seeking diversification or higher returns through emerging market exposure.

US Dollar Index

A measure of the USD against a basket of six other major currencies, the US Dollar Index (DXY) serves as a benchmark for assessing the dollar’s strength in the global currency market. Established in 1973 by the Federal Reserve, the DXY pairs the USD against EUR. JPY, GBP, CAD, CHF, and SEK.

Learn Currency Trading

The journey to learning forex trading is unique to each individual; there’s no universal path that suits everyone. Your progress depends largely on your personal circumstances, mindset, and the strategies you adopt to accelerate your learning process.

One of the best ways to gain experience to currency trading is by taking what you can from the practical knowledge of seasoned professionals. Unlike many other topics, forex trading is predominantly self-taught, making it invaluable to learn from experienced traders who have navigated the challenges and successes of the market. By treating forex trading seriously and committing to the goal of becoming a top-tier trader, you can better position yourself for success, although it will not be easy.

It’s important to keep in mind that there are no shortcuts in forex trading. Only consistent effort, focus, proper risk-management, and a lot of determination will guide you toward achieving the best possible results.