Forex trading is a dynamic and fast-paced activity that takes place 24/7. However, there are some particular times when certain forex pairs are more actively traded than others. Fridays, for instance, are known to be relatively slow trading days when compared to other weekdays. Nonetheless, there are still a few forex pairs that can be traded on Fridays.
Forex pairs are classified into three broad categories – major, minor, and exotic. Major forex pairs are those that involve the US dollar as one of the currencies in the pair. They include EUR/USD, GBP/USD, USD/JPY, USD/CHF, and AUD/USD. Minor forex pairs, on the other hand, do not involve the US dollar but involve other major currencies such as the euro, yen, or pound. Examples of minor pairs include EUR/JPY, GBP/JPY, and EUR/GBP. Finally, exotic pairs involve at least one of the currencies of an emerging market country. They include USD/ZAR, USD/MXN, and USD/TRY.
On Fridays, forex trading activity tends to slow down as investors and traders tend to close their positions ahead of the weekend. As such, some forex pairs may experience low volatility or liquidity, making them less attractive to traders. However, major forex pairs remain actively traded on Fridays due to their high liquidity and volatility. These pairs are less vulnerable to market manipulation and offer traders a higher degree of predictability.
One of the most popular forex pairs traded on Fridays is the EUR/USD. This pair is the most widely traded and liquid forex pair in the world, accounting for over 20% of global forex trading volume. The pair is also highly volatile, making it attractive to traders who seek to profit from short-term price fluctuations. On Fridays, traders may take advantage of the pair’s volatility by opening positions and closing them before the weekend.
Another forex pair that can be traded on Fridays is the USD/JPY. This pair is the second most traded forex pair in the world, accounting for about 17% of global forex trading volume. The pair is also known for its high liquidity and low volatility, making it a popular choice for traders who seek to avoid high-risk investments. On Fridays, the pair may experience a slight decrease in volatility due to reduced trading activity, but it remains a viable option for traders.
The GBP/USD is another major forex pair that can be traded on Fridays. This pair is the third most traded forex pair in the world, accounting for about 9% of global forex trading volume. The pair is also highly volatile, making it attractive to traders who seek to profit from short-term price fluctuations. On Fridays, the pair may experience some reduced liquidity, but it remains a popular choice for traders who seek to capitalize on market movements.
Other minor forex pairs that can be traded on Fridays include EUR/JPY, GBP/JPY, and EUR/GBP. These pairs are less liquid than major pairs but can still offer traders opportunities to profit from short-term price movements. Exotic forex pairs, on the other hand, may experience reduced liquidity and volatility on Fridays due to low trading activity.
In conclusion, forex trading on Fridays may be slower than other weekdays, but there are still several forex pairs that can be traded. Major forex pairs such as EUR/USD, USD/JPY, and GBP/USD remain actively traded due to their high liquidity and volatility. Minor forex pairs such as EUR/JPY, GBP/JPY, and EUR/GBP may also offer trading opportunities. Exotic currency pairs may experience low trading activity and liquidity on Fridays, making them less attractive to traders. As with any trading activity, it is important to conduct thorough research and analysis before making any investment decisions.
