Forex trading requires a clever strategy and strong forex currency pairs, but even with unlimited knowledge on the subject, no one truly knows the potential of a currency pairing day-to-day. Everything could change in a matter of hours, depending on what is happening across the globe.
What are forex currency pairs?
Despite the risk that comes with forex trading, knowing which forex currency pairs to trade is essential to limit mistakes and get the most from trades. Knowing what currency pairs are and which work best together is the first step.
The whole premise of forex trading is to exchange currencies. Regardless of buying or selling, forex consists of moving a currency in exchange for other currencies. A currency pair is defined by the amount each currency is worth to another.
Forex currency pairs to trade in July 2022
As expected, due to sporting the world’s largest economy, the strongest and most traded currency at present is the US dollar. The value of a currency pair can fluctuate depending on the day, time and current events, and many forex currency pairs to trade include USD.
USD to EUR
This is one of the most popular forex currency pairs traded today. USD to EUR is essentially US dollars and is an incredibly influential pairing moved by political updates specifically.
The euro is a solid currency for 19 of the 28 members of the European Union, including
- The Netherlands
Tip: this trend notably works well alongside GBP/USD.
GBP to USD
The Great British Pound is the official standalone currency of the United Kingdom, spent across England, Scotland and Wales as the third most traded currency in the world – just behind the USD and the EUR.
In recent years, influential events such as the Great Recession and Brexit have affected the GBP. Despite this, GBP to USD remains a widely traded currency pair and has balanced out recently.
AUD to USD
Standing as one of the most traded forex currency pairs, the Australian dollar paired with the USD is often a rewarding outcome. Considering the Australian dollar is one of the best performing major currencies, the AUD/USD pair holds high liquidity and volatility.
Due to Australia working as an exporter of valuable metals, iron and coal, the AUD is often considered a commodity currency in the forex market.
USD to JPY
The value of the yen is known to experience numerous daily fluctuations due to being held as a reserve currency behind the core three: USD, Euro, and GBP. However, the banks of Japan often buy and sell the JPY to keep exchange rates in order. The Japanese government works to keep the yen value low to develop a competitive advantage.
If you buy at the right time, there is a possibility you can grow large profits by capitalising on the daily changes.
USD to CAD
While this pair sometimes negatively correlates with the core three: AUD/USD, EUR/USD and GBP/USD, it is consistently in the top ten most traded currencies in the world, and if it is in your strategy, you can expect positive liquidity and spreads. To keep an eye on how this pair might play out, keep an eye on oil prices.
USD to CHF
The Swiss Franc (CHF) is the official currency of Switzerland, and those who invest in CHF often do so to protect assets in uncertain times. It is considered a safe currency and is often appreciated when other currencies lose value. Keep this in mind when trading.
Financial Markets Online forex courses
Which forex currency pairs will you be trading in July 2022? If you are still uncertain, Financial Markets Online provides an array of fantastic forex trading courses to help you become a successful trader. Get in touch with us today to learn more.