What are the Major Currency Pairs

Major Currency Pairs in Forex Trading

Major currency pairs are the most traded and liquid pairs in the Forex market. They typically include the U.S. dollar (USD) paired with other major currencies. Here are the key major currency pairs:

#### 1. **EUR/USD (Euro/US Dollar)**
– **Description**: The most traded currency pair globally.
– **Characteristics**: Highly liquid with low spreads, influenced by economic indicators from both the Eurozone and the U.S.

#### 2. **USD/JPY (US Dollar/Japanese Yen)**
– **Description**: Represents the exchange rate between the U.S. dollar and the Japanese yen.
– **Characteristics**: Known for volatility; affected by Japan’s economic data and U.S. monetary policy.

#### 3. **GBP/USD (British Pound/US Dollar)**
– **Description**: The exchange rate between the British pound and the U.S. dollar, often referred to as “Cable.”
– **Characteristics**: Sensitive to news from the UK and U.S., with significant price movements during key events.

#### 4. **USD/CHF (US Dollar/Swiss Franc)**
– **Description**: Represents the exchange rate between the U.S. dollar and the Swiss franc.
– **Characteristics**: Considered a safe-haven currency; tends to be stable during market volatility.

#### 5. **AUD/USD (Australian Dollar/US Dollar)**
– **Description**: The exchange rate between the Australian dollar and the U.S. dollar.
– **Characteristics**: Influenced by commodity prices, particularly metals and agricultural products.

#### 6. **USD/CAD (US Dollar/Canadian Dollar)**
– **Description**: Represents the exchange rate between the U.S. dollar and the Canadian dollar.
– **Characteristics**: Closely tied to oil prices due to Canada’s oil exports and economic data from both countries.

#### 7. **NZD/USD (New Zealand Dollar/US Dollar)**
– **Description**: The exchange rate between the New Zealand dollar and the U.S. dollar.
– **Characteristics**: Affected by commodity prices, especially dairy and agricultural exports.

### Summary of Major Currency Pairs
– **EUR/USD**
– **USD/JPY**
– **GBP/USD**
– **USD/CHF**
– **AUD/USD**
– **USD/CAD**
– **NZD/USD**

These major pairs account for a significant portion of the daily trading volume in the Forex market, making them popular choices for traders due to their liquidity and the availability of relevant economic data. Understanding these pairs is essential for successful Forex trading.