- PPF Points
- 2,039
When it comes to Forex, there are a few pairs of currencies that are certainly better suited to trading, especially for those who seek liquidity, tighter spreads, and more predictable price movements. The leader of the pack is, without any doubts, EUR/USD and the reason is that it is the largest one that is traded in the world that ensures a wide range of liquidity with a low cost of trade and handily a smooth price action. Moreover, it loads you with many data points from the number of news releases and research reports. There’s also the sound option of GBP/USD, known in the forex market as 'Cable', which moves a bit quicker than EUR/USD. On the other hand, USD/JPY pair is for those carrying a preference for no distraction from the smooth technical scenario of their favorite trade and cleaner price movements. It is the yen that moves punctually to the news about the interest rates and the economic policies of both countries of Japan and the USA which occasion little noise. The following are easygoing pairs if you are a cheer of a bit more fun trading, AUD/USD and USD/CAD, as they are shown to be influenced by basic commodities such as oil and gold. If you are into the commodity markets then the pairs should be the correct ones for you. NZD/USD is another such pair, albeit, a lacklustre one. Finally, EUR/JPY and GBP/JPY could also be sensible alternatives. Although they can be highly volatile, traders can manage risks properly. The above described are the best currency pairs, in general, but definitely, your choice should be guided by your style of trading whether you are a scalper, a day trader or a swing trader and your capacity to follow the news driving the market.
