FxScouts Currency Pairs
Discover the latest movements and expert technical analysis on the currency pairs, with an interactive live chart and a comprehensive list of brokers offering the lowest trading costs for this dynamic market.
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What Are the Major Currency Pairs in Forex Trading?
Major currency pairs (or “majors”) are the most actively traded pairs in the Forex market, and all of them include the US dollar as one side of the transaction. The seven major currency pairs are EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, USD/CHF, and NZD/USD.
These pairs dominate global trading because they combine the world’s most powerful and stable economies with the US dollar’s role as the primary reserve currency. Their popularity translates into exceptionally high liquidity, tight spreads, and large daily trading volumes, all of which make them attractive to both beginners and seasoned professionals.
An interesting insight is that each pair tends to reflect not just economic fundamentals, but also distinct market themes:
- EUR/USD is often seen as a barometer of global risk sentiment and the strength of the Eurozone versus the US.
- USD/JPY is heavily influenced by interest rate differentials and Japan’s role as a funding currency in carry trades.
- GBP/USD, commonly referred to as the “Cable,” is historically volatile and often closely tied to UK political and economic developments.
- AUD/USD and NZD/USD are sometimes called “commodity pairs,” as they are highly correlated with global demand for raw materials and risk appetite.
- USD/CAD is closely tied to oil prices, given Canada’s role as a major energy exporter.
- USD/CHF, with the Swiss franc’s reputation as a safe-haven currency, often attracts flows during times of market uncertainty.
Because of these unique characteristics, traders don’t just see majors as liquid instruments, but also as windows into broader macroeconomic trends, making them central to almost every trading strategy.
FAQ
Get answers on trading major currency pairs: best times, daily pip ranges, spreads, broker conditions, and why they’re ideal for beginners.
What is the best time to trade the major pairs?
The most active times are during the London and New York sessions, especially when they overlap. Liquidity is highest then, which means tighter spreads and more consistent price action.
How many pips do major pairs move per day?
On average, major pairs move anywhere between 50 and 120 pips daily. EUR/USD and GBP/USD tend to have larger ranges, while USD/CHF often shows smaller, steadier moves.
Are major pairs good for beginners?
Yes. Their high liquidity, tight spreads, and wealth of available analysis make them easier to trade than exotic or minor pairs. Beginners also benefit from fewer price shocks compared to less liquid markets.
How are spreads on major pairs handled during weekends and rollovers?
Spreads usually remain very tight during active trading hours but can widen significantly at rollover (5 p.m. New York time) and over weekends when liquidity is low. Traders should exercise caution with stop orders during these periods.
Why are major pairs considered safer to trade than exotic pairs?
Majors involve the world’s largest and most stable economies. This makes their price movements less erratic, with more predictable patterns based on well-documented economic data and news releases.
Do all brokers offer the same trading conditions on major pairs?
Not exactly. While spreads on majors are generally low everywhere, execution speed, commission structures, and swap rates can differ between brokers, so it pays to compare.
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