Which currency pair is most profitable in forex trading

Which currency pair is most profitable in forex trading.

Which currency pair is most profitable in forex trading?

Well, The enormous volume of the world’s trading, with individuals from all countries of the globe engaging every day.

What is that? Yes, you guessed correct — the Foreign Exchange Market (Forex).
The Currency Forex market has arisen to ease the exchange of currencies worldwide to trade.

It is the leading financial market in the world, which reflects the economic dynamics of world trade surely.

There are over 300 currencies globally that you can trade.

Out of these, only a small number of currency pairs that can return the highest profits.

The EUR/USD.

Which currency pair is most profitable in forex trading?

There are many But I today I am describing EUR/USD.

EURUSD PAIR

EUR/USD, the most traded currency pair in the forex market, with approximately 24.0% of daily transaction volume.

And the demand for the EUR/USD pair happened by the world’s two largest economies that are the European single market(ESM) and the US.

EUR/USD has a negative correlation with USD/CHF and a positive relationship with the GBP/USD.

For this currency correlation of the positive and negative, respectively,

The euro, the British pound positively correlated with EUR/USD, and negatively with the Swiss franc.

The massive amount of daily capacity of EUR/USD trades confirms that the euro and dollar has a high chance of liquidity that generally show to compressed spread.

The liquidity and compressed spread are attractive for the world of retail forex traders as well as other traders.

They show that all trades of EUR/USD can create with very little influence.

 There are many factors for setting the currency rate of EUR/USD, not only the interest rate defined by the (ECB) and the (Fed).

It is since the currency of any country with the higher interest rates will typically be in significant demand as higher interest rates provide a substantial return on their original investment.

For example, the ECB increases interest rates, and that will be higher than the Fed, then, and it may expect that the euro would rise its relation to the dollar.

The GBP/USD.

GBPUSD

The GBP/USD Or” Cable” has a negative correlation with USD/CHF and a positive relationship with the EUR/USD.

For this currency correlation of the positive and negative, respectively, that is the British pound, the euro positively correlated with GBP/USD, and negatively with the Swiss franc.

GBP/USD pair made up approximately 9.6% of daily transaction volume.

When the British pound currency’s strength increases, it means that the United Kingdom country’s economic growth is faster than the United States of America.

If it occurs, the pound will likely strengthen against the dollar, and the currency pair of GBP/USD will increase.

However, if it does not happen, then the GBP/USD will decrease.

So there are many currency pairs to trade, but today I will teach only the most tradable currency pairs.

The price of GBP/USD affects by the monetary policy like interest rates set by the (BoE) and the Fed.

The following difference between the monetary policy of both UK and USA countries like the interest rates and money supply on the GBP and the USD can have a great outcome on the price of the GBP/USD currency pair.

Our question was which currency pair is most profitable in forex trading, so the answer is GBP/USD and EUR/USD.

Moreover, In this article, I have described only two most tradable currency pairs.

And in my next post, I will express others one.

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About Muhammad Shahid

My name is Muhammad Shahid, MBA in Finance from IBA, University of Sindh, Professional Forex Trader & Trainer, I have taught more than 850 Students throughout the Sindh.

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