Forex trading has gained immense popularity in recent times, and the market has become more accessible to individual investors. One of the fundamental principles of forex trading is currency pairs. A currency pair is the quotation of two currencies, where the value of one currency is quoted in terms of the other currency. The forex market offers multiple currency pairs to trade, and traders can choose from a wide range of options. In this article, we will discuss some of the best cross pairs in forex trading.
Cross pairs are currency pairs that do not include the US dollar. These pairs are also known as minor currency pairs or exotic pairs. Cross pairs are not as liquid as major pairs, but they offer exciting trading opportunities. Let’s take a look at some of the best cross pairs in forex trading.
1. EUR/JPY
The EUR/JPY is one of the most popular cross pairs in the forex market. The pair is the combination of the euro and the Japanese yen. The Japanese yen is known for its safe-haven status, and the euro is the second most traded currency in the world. The EUR/JPY pair is volatile, and traders can take advantage of the price movements to make profits.
2. GBP/JPY
The GBP/JPY pair is another popular cross pair in forex trading. The pair is the combination of the British pound and the Japanese yen. The pound is the fourth most traded currency in the world, and the yen is known for its safe-haven status. The GBP/JPY pair is volatile, and traders can take advantage of the price movements to make profits.
3. AUD/NZD
The AUD/NZD pair is the combination of the Australian dollar and the New Zealand dollar. The pair is popular among traders due to its low volatility and stable price movements. The Australian and New Zealand economies have a strong correlation, and the pair is affected by the economic data released by both countries.
4. EUR/GBP
The EUR/GBP pair is the combination of the euro and the British pound. The pair is popular among traders due to its high liquidity and volatility. The euro and the pound are two of the most traded currencies in the world, and the pair is affected by the economic data released by both countries.
5. CAD/JPY
The CAD/JPY pair is the combination of the Canadian dollar and the Japanese yen. The Canadian dollar is known for its strong correlation with the oil prices, and the Japanese yen is known for its safe-haven status. The pair is affected by the economic data released by both countries, and traders can take advantage of the price movements to make profits.
Conclusion
In conclusion, forex trading offers multiple cross pairs to trade, and traders can choose from a wide range of options. Cross pairs offer exciting trading opportunities, and traders can take advantage of the price movements to make profits. The above-listed pairs are some of the best cross pairs in forex trading, and traders can consider trading these pairs to diversify their portfolios. However, traders should always do their research and analysis before trading any currency pair.