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What Are the Most Commonly Traded Currency Pairs?

By

澳洲幸运5开奖号码历史查询:Albert Phung

Updated October 10, 2024

Reviewed by

Somer Anderson

Fact checked by

Katrina Munichiello

World Currencies — narvikk / Getty Images

The American dollar is the most actively traded currency in the world due to the size and strength of the United States economy. Many official currencies are used but only a handful of them 澳洲幸运5开奖号码历史查询:are traded actively in the forex market. Only the most economically and politically stable liquid currencies are demanded in sufficient quantities in currency trading.

Key Takeaways

Forex markets are used to trade exchange rates between two or more national currencies.
All trading within the forex market takes place through currency pairs whether selling, buying, or trading.
The most common currency pairs often involve the U.S. dollar or Euro.
Common pairs may also show up among geographical neighbors like Australia and New Zealand.

What Are Currency Pairs?

Currency pairs are national currencies from two countries that are coupled for trading on the 澳洲幸运5开奖号码历史查询:foreign exchange (FX) marketplace. Both currencies will have exchange rates on which the trade will have its position basis. All 澳洲幸运5开奖号码历史查询:trading within the forex market will take pl൩ace through curr🐟ency pairs whether it's selling, buying, or trading.

Nearly any nation's currency can trade but some currencies pair more frequently than other money. All the primary currency pairs contain the USD. Many major currency pairs exist in the forex market around the world. Some of the most common currency pairs with the USD other than the 澳洲幸运5开奖号码历史查询:Eurodollar are:

USD/JPY: This currency pair sets the U.S. dollar against the Japanese Yen.
USD/GBP: This currency pair sets the U.S. dollar against the United Kingdom pound and is commonly referred to as the pound-dollar.
USD/CHF: This currency pair sets the U.S. dollar against the Switzerland currency. It's referred to as the dollar swissy.
USD/CAD: This currency pair sets the U.S. dollar against the Canadian dollar. It's referred to as the dollar-loonie.
AUD/USD: This currency pair sets the U.S. dollar against the Australian dollar and is referred to as the Aussie dollar.
NZD/USD: This currency pair sets the currency of New Zealand against the U.S. dollar and is referred to as the kiwi dollar.

Important

Some currency pairs don't trade against the U.S. dollar. They're called 澳洲幸运5开奖号码历史查询:cross-currency pairs.&ඣnbsp;Common cross-currency pairs involve the euro ꧅and the Japanese yen.

The Mosꦚt Commonly Traded Currency Pairs in the Forex 🌠Market by Volume

Currencies must be traded in pairs. Twenty-eight currency pairs can be derived from just eight currencies alone but about 18 currency pairs are conventionally quoted by 澳洲幸运5开奖号码历史查询:forex market makers as a result of their overall 澳洲幸运5开奖号码历史查询:liquidity:

USD/CAD	EUR/JPY
EUR/USD	EUR/CHF
USD/CHF	EUR/GBP
GBP/USD	AUD/CAD
NZD/USD	GBP/CHF
AUD/USD	GBP/JPY
USD/JPY	CHF/JPY
EUR/CAD	AUD/JPY
EUR/AUD	AUD/NZD

The total amount of currency trading involving these 18 pairs represents the majority of the trading volume in the FX market. This man༺ageable number of choices makes trading a lot less complicated compared to dealing with equities that have thousands of possible choices to choose from.

How Many Currencies Are There in the World?

There are 161 official currencies in the world but only 50 of them share a fixed exchange rate, including the Bahamian dollar and the U.S. dollar. The British pound sterling is the oldest currency.

What Are the Most Traded Currencies?

The eight most traded currencies are the U.S. dollar (USD), the euro (EUR), the Canadian dollar (CAD), the Japanese yen (JPY), the British pound (GBP), the Australian dollar (AUD), the Swiss franc (CHF), and the Chinese Yuan (CNY).

What Is a Liquid Currency?

The term liquidity indicates an ability to easily turn the value of an asset into cash. A liquid currency can easily be exchanged for an asset. A good many buyers and sellers are willing to engage in such a transaction.

The Bottom Line

A currency pair consists of national currencies from two countries that can be paired for trading on forex markets. All forex trading is based o🌃n currency pairs 🔥and trade exchange rates.

The most common pairs include the U.S. dollar or the euro. Popular pairs also appear with geographical neighbors such as the U.S. dollar and🅰 the Canadian dollar. The American dollar is the most actively traded currency in the world thanks to the size and strength of the United States economy.

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