In the world of forex trading, the range is defined as the distance between the highest and lowest prices of a currency pair during a given time frame. This range can be used by traders to identify potential trading opportunities and to help manage risk. Understanding the current average trading ranges of the major forex pairs is essential for any trader looking to succeed in the market.
The major forex pairs include EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, and USD/CAD. These pairs are considered major due to their high liquidity, large trading volume, and the fact that they involve the world’s most powerful economies.
EUR/USD is the most traded currency pair in the forex market. The average daily range for this pair is around 80 pips. The highest daily range for EUR/USD was recorded on September 24, 2008, when it reached 346 pips. The lowest daily range was recorded on December 24, 2019, when it was just 10 pips. The pair is heavily influenced by economic indicators from both the European Union and the United States, such as GDP, inflation, and interest rates.
USD/JPY is the second-most traded currency pair in the forex market. The average daily range for this pair is around 70 pips. The highest daily range for USD/JPY was recorded on January 5, 2017, when it reached 585 pips. The lowest daily range was recorded on May 26, 2014, when it was just 10 pips. The pair is heavily influenced by economic indicators from both the United States and Japan, such as GDP, inflation, and interest rates.
GBP/USD is the third-most traded currency pair in the forex market. The average daily range for this pair is around 80 pips. The highest daily range for GBP/USD was recorded on June 24, 2016, when it reached 1,300 pips. The lowest daily range was recorded on December 24, 2019, when it was just 16 pips. The pair is heavily influenced by economic indicators from both the United Kingdom and the United States, such as GDP, inflation, and interest rates.
USD/CHF is the fourth-most traded currency pair in the forex market. The average daily range for this pair is around 60 pips. The highest daily range for USD/CHF was recorded on January 15, 2015, when it reached 1,200 pips. The lowest daily range was recorded on December 24, 2019, when it was just 12 pips. The pair is heavily influenced by economic indicators from both the United States and Switzerland, such as GDP, inflation, and interest rates.
AUD/USD is the fifth-most traded currency pair in the forex market. The average daily range for this pair is around 70 pips. The highest daily range for AUD/USD was recorded on October 7, 2008, when it reached 1,000 pips. The lowest daily range was recorded on December 24, 2019, when it was just 16 pips. The pair is heavily influenced by economic indicators from both Australia and the United States, such as GDP, inflation, and interest rates.
USD/CAD is the sixth-most traded currency pair in the forex market. The average daily range for this pair is around 70 pips. The highest daily range for USD/CAD was recorded on January 15, 2015, when it reached 1,200 pips. The lowest daily range was recorded on December 24, 2019, when it was just 11 pips. The pair is heavily influenced by economic indicators from both the United States and Canada, such as GDP, inflation, and interest rates.
In conclusion, understanding the average trading ranges of the major forex pairs is important for any forex trader looking to succeed in the market. The daily ranges of these pairs can fluctuate greatly and can be influenced by a variety of economic indicators from different countries. By monitoring these ranges, traders can identify potential trading opportunities and manage risk accordingly.
