Top Forex Currency Pairs

The forex market has been nervous since its inception. In light of one important impact, the coronavirus outbreak. It began in China as a regional pandemic. Now it has spread to over 213 countries. It has affected over 20 million people worldwide.

The deadly virus forced governments to close their cities and states and stop all manufacturing and transportation activities.

The episode had a severe impact on the Best Forex Currency Pairs

GBP/USD (Pound Sterling/US Dollar)

The market is expected to move significantly in the wake of the US election. This is why it’s a good idea to invest in this pair. The most traded currency in the forex market is the US dollar. It responds to risk-on/risk off sentiments that creep into markets, with the coronavirus episode applying risk assumption on business sectors.

USD/JPY (USD/Japanese YEN)

The Japanese yen is currently in a fight to determine which currency is more risk-hedging than the other. The USD/JPY currently exhibits more volatility than before the Federal Reserve cut rates July 2019.

AUD/JPY (Australian Dollar/Japanese Yen)

The AUD/JPY pair, which is the most undervalued of all forex currency pairs, is another major safe haven. The risk appetite has been affected by the US corona developments, which have weighed down the Yen and raised the concern.

Shinzo Abe’s government has increased its economic evaluation of the country for the first time since 2018. Tokyo has also raised its restrictions on all companies and tightened its security.

The pair lost 64 points in March, a plunge of 76 points from last year. However, it rebounded in June.

NOK/SEK (Norwegian Krone/Swedish Krone)

This is the currency that does not include the US dollar. NOK against SEK One of the most undervalued G10 currencies is the Norwegian forex. The central bank of the country predicts that the nation’s GDP will fall by 3.5% in 2013, which is lower than the 5.2% drop forecast. With rising oil prices, the country’s currency will get stronger. This is despite the positive outlook for oil.

The Norwegian central bank is also not involved in quantitative measures such as an interest rate cut, which is a difference from other reserve banks like Sweden. The nation is instead buying oil fund assets and the krone. This makes it more attractive and better than other countries.

From 1.07 in January 2020, the NOK/SEK plunged to 0.89 by March. The currency recovered and touched the 0.98 mark. Experts like TD Securities also predict that the currency pair will continue to trade at the same level as before.

CHF/USD (Swiss Franc/US DOLLAR)

Another notable pair is the Swiss Franc. It is primarily known for its safe-haven qualities and attracts the huge interest of all traders around the globe.

CAD/USD (Canadian Dollar/ Us Dollar)

The Canadian dollar can be considered a commodity currency. It is linked to crude oil. Canada has the second largest oil storage in its shale oilsands. The Bank of Canada’s decision on March 6 to reduce financing costs by 50 Bps is considered a smart move. This was done in support of Canada’s economy. It also helps lower crude oil expenses. In the coming months, USD/CAD will bring a lot of activity.

USD/EUR (US Dollar/ Euro)

It is the most popular pair on the forex currency market at the moment, and it is likely to maintain its position in 2020. Because it is a fundamental technical analysis asset, it has the lowest spread of all forex assets. This pair is easy to exchange, even for amateurs, as it’s not too volatile.

Experts recommend that people who prefer not to face difficulties choose a currency pair such as the USD/EUR, because it is easy to predict its future development. The internet indexes provide a wealth of information about this currency pair that can be used to help beginners keep a strategic distance.

EUR/GBP (European Euro/British Pound)

The pair moves in a bizarre way. You will notice sharp ascents, falls, resistance levels, and flat movement. This pair can occasionally show you different types of developments. With a similar ability of use, traders can open rebound or breakout orders. This pair is likely to drive any news about Brexit in 2020.

Prediction for in Forex Market

The financial impact on the commodity flexibility chains of different countries would depend on how wide COVID-19 is spread worldwide. They will be the main drivers of currency value activity over the long stretch.

How much the global coronavirus outbreak impacts the economy will determine the bearing of the forex market. The factor will also be determined by the reaction of strategy makers and national banks, as well as the market’s hazard conclusion.

Healthcare organizations are trying to find a vaccine or antibody. It is possible that the COVID-19 vaccines will be delivered to the most affected areas within the next quarter. If this is achieved, then hazard avoidance might cease and potentially dangerous resources may begin to recover.

The Brexit exchange talks, which are weighing a lot in Q1 2020 and Q2 2020, have an added weight for forex currency pairs. As the discussion deadline approaches, volatility could increase on the GBP/USD or EUR/GBP pairs.

Safe refuge currencies, however, are good options until then.

How to choose a forex broker

These are the things you should be looking for before you decide on a forex broker.

Spreads and Charges: A true broker will offer tight spreads and fees and not charge any commission for trading assets. The fees should be clearly stated and any hidden charges must be avoided. This is where HFtrading brokers excel. You can read the full review of the broker here.

Spreads and Charges: A true broker will offer tight spreads and fees and not charge any commission for trading assets. The fees should be clearly stated and any hidden charges must be avoided. This is where HFtrading brokers excel. You can read the full review of the broker here.

Safety and Security: Trading anything is impossible if a broker isn’t safe. Checking licenses and regulations is a good way to verify the authenticity of a broker. ASIC, CySEC and FCA are the top financial institutions in the world. Tickmill broker is also a great choice. This is a comprehensive review of ET finance.

Customer Support: All brokers should have a customer service team that can answer all queries. Good support teams respond quickly and are polite, knowledgeable, and rational.

Conclusion

Forex currency pairs’ prices can vary depending on many factors. They are heavily affected by the trade relations with other countries as well as the export-import scenario. Forex traders can trade in leveraged assets, which is more advantageous than stocks or other markets. People are only aware of high profitability, and not the fundamentals.

Enhancing knowledge is the best way to learn forex basics and other related topics. Reading books is a great way to expand your knowledge.

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