Forex currency pairs that traders should closely monitor: Analysis of the top 10 currencies

When entering the world of currency trading, the first question that arises in the minds of novice investors is “Which currency pairs should I trade for the best results?” This question has a clear answer because the Forex market offers a variety of major, minor, and emerging currencies to choose from. However, the differences among them are not limited to their names; factors such as volatility, liquidity, and risk are also crucial, significantly impacting your trading strategies.

This article will give you an in-depth understanding of Forex currency pairs that are popular in the market, along with analysis tables and detailed recommendations.

What are Forex currency pairs and how are they different?

Forex currency pairs consist of two currencies: the first is the “base currency,” and the second is the “quote currency.” This relationship determines the relative value of the two currencies.

For example, EUR/USD: Euro is the base currency, US dollar is the quote currency. An exchange rate of 1.3045 means 1 Euro equals 1.3045 US dollars.

The price of this pair fluctuates constantly based on economic factors, political events, and market sentiment. Traders measure these changes in “Pips,” which are standard units of price movement.

Factors driving exchange rates include: interest rates, inflation, economic reports, and central bank decisions. For instance, if the Eurozone economy shows strength, the euro tends to appreciate against the dollar.

Successful traders must monitor these factors regularly to make informed buy/sell decisions and manage risks wisely.

Analysis table of 10 Forex currency pairs to watch closely

Notes on the table:

• Daily Pip Range: Typical daily price movement, varies with market conditions.
• Trading Share: Percentage of global Forex transactions involving that currency pair.

In-depth analysis of 10 Forex currency pairs

( 1. EUR/USD: The star of the Forex market

EUR/USD, or the “Euro-Dollar” pair, is the most traded currency pair worldwide, serving as an indicator of global economic stability and trade relations.

Driving factors: ECB and Fed interest rate policies, GDP statistics, employment data, geopolitical events.

Unique features: Very high liquidity, narrow spreads, suitable for both beginners and professionals.

Optimal trading times: 08:00 - 16:00 GMT ) during the London and New York overlap ###

General volatility: 70-90 Pips per day

Suitable for: Traders of all levels, especially those seeking liquidity and predictability.

( 2. USD/JPY: The Asian dragon

This pair reflects the relationship between the US and Japanese economies and is a standard benchmark in the Asian market.

Driving factors: GDP figures, inflation rates, Fed and BoJ interest policies, geopolitical events.

Unique features: Moderate volatility, responds to global events, Yen is a “safe-haven” currency.

Optimal trading times: 23:00 - 03:00 GMT ) Tokyo session ### and the London-New York overlap.

General volatility: 50-70 Pips per day ( may be higher during uncertain periods )

Suitable for: Traders focusing on the Asian session or interested in macro trends.

( 3. GBP/USD: The “Cable” of America-UK

Pound-Dollar, known as “Cable,” has a long trading history since the 19th century. This pair is known for its volatile swings.

Driving factors: UK and US GDP figures, BoE and Fed policies, Brexit issues, political events.

Unique features: High volatility, sensitive to economic and political news.

Optimal trading times: 08:00 - 16:00 GMT ) London-New York ### and 07:00 - 09:00 GMT ( UK morning )

General volatility: 90-110 Pips per day

Suitable for: Intermediate to advanced traders who enjoy volatility and profit opportunities.

( 4. USD/CHF: The “Swiss” - financial safety

US Dollar / Swiss Franc reflects Switzerland’s economic stability and safety.

Driving factors: Fed and SNB interest policies, inflation, export data.

Unique features: Stability, lower volatility than GBP/USD, “safe-haven” currency, moves counter to risk sentiment.

Optimal trading times: 07:00 - 16:00 GMT ) Europe and America sessions ###

General volatility: 50-70 Pips per day

Suitable for: Risk-averse traders seeking protection or avoiding uncertainty.

( 5. AUD/USD: The “Aussie” - commodity proxy

AUD/USD is heavily influenced by gold and mineral prices, and China trade.

Driving factors: Commodity prices )Gold, iron ore###, trade relations with China, RBA policies, Australian economic data.

Unique features: Commodity-linked, high volatility, trend opportunities.

Optimal trading times: 00:00 - 04:00 GMT ( Asian session ) and the New York overlap.

General volatility: 60-80 Pips per day

Suitable for: Commodity traders, Asian session traders.

( 6. USD/CAD: The “Loonie” - oil-linked

USD/CAD, nicknamed after the loon on the Canadian coin, is influenced by crude oil prices.

Driving factors: Crude oil prices, GDP figures, employment data, BoC and Fed policies.

Unique features: Interacts with oil prices, moderate volatility, trend-following.

Optimal trading times: 12:00 - 20:00 GMT ) New York session ###

General volatility: 60-80 Pips per day

Suitable for: Traders focusing on commodities, especially oil, with moderate volatility.

( 7. EUR/GBP: European relations

EUR/GBP reflects economic ties between the Eurozone and the UK.

Driving factors: GDP figures, ECB and BoE policies, trade issues, Brexit developments, economic data.

Unique features: Less volatile than GBP/USD but still sensitive, good liquidity, narrow spreads.

Optimal trading times: 07:00 - 16:00 GMT ) London session ###

General volatility: 40-60 Pips per day

Suitable for: Traders interested in European markets, seeking lower volatility than GBP/USD.

( 8. USD/CNY: Major emerging market

USD/CNY reflects the economic relationship between the US and China, highly influential.

Driving factors: PBoC policies, trade balance, GDP data, US-China geopolitical tensions.

Unique features: Strict controls, moderate volatility, political uncertainty.

Optimal trading times: 01:00 - 09:00 GMT ) Asian session ###

General volatility: 50-70 Pips per day

Suitable for: Traders understanding emerging markets, geopolitics.

( 9. NZD/USD: The “Kiwi” - dairy and trade

NZD/USD is influenced by dairy prices and agricultural exports.

Driving factors: Global dairy prices, GDP figures, RBNZ data, global risk sentiment.

Unique features: Commodity-linked, high volatility, trend opportunities in volatile markets.

Optimal trading times: 00:00 - 04:00 GMT and 12:00 - 16:00 GMT ) Asian and New York sessions (

General volatility: 50-70 Pips per day

Suitable for: Commodity traders, Pacific market traders.

) 10. USD/HKD: Pegged currency

USD/HKD is almost fully pegged by the HKMA.

Driving factors: Fed interest policies, Hong Kong GDP, political stability.

Unique features: Very low volatility, pegged currency, limited movement, very narrow spreads.

Optimal trading times: 01:00 - 08:00 GMT ### Asian session (

General volatility: 10-30 Pips per day

Suitable for: Stability seekers, carry traders, Asian market traders.

Summary: Evolution and future of Forex trading

Forex currency pairs from major currencies like USD, EUR, JPY dominate the global Forex market for clear reasons: stability and high trading volume.

However, economic factors, trade relations, interest rate changes, and global turmoil all influence the pricing of each pair.

For successful traders, real-time news monitoring and understanding each pair’s characteristics are key to risk management and profit opportunities. Knowledge of Forex pairs analysis tables and the driving factors of each currency form a solid foundation for effective trading.