At present, there is no doubt that any currency pair linked to the pound is the most volatile asset, and the Swiss franc is still the "king" of arbitrage trading. Then, let's learn more about the popular currency pairs in foreign exchange.
1. Euro/USD This is not only the most popular currency pair of 20 19, but also the most popular currency pair in recent years. In addition, the trading volume and net liquidity of these two assets are high. As we all know, Euro/USD is the most traded currency pair in the foreign exchange market. Therefore, it is also the main currency pair with the lowest spread. Its features include:
? It is easily influenced by news events such as non-agricultural data (NFP), Federal Reserve Open Market Committee (FOMC), quantitative easing policy and political activities in the euro zone.
? Its fluctuation is the largest in London trading hours, but usually it will not be great in a trading day;
? Its daily consolidation range is at the average level;
? For most of the trading day, EUR/USD is in a unilateral market, usually retreating at Fibonacci level with a large value.
2. GBP/USD Compared with other currencies, GBP has been influenced by political and economic news for the third consecutive year.
The quotation of this currency pair changes 100 points every day on average. The main reason why the currency pair fluctuated so violently was the storm of Britain's withdrawal from the European Union. Generally speaking, these news are controversial and will trigger high fluctuations in all foreign exchange pairs (including pounds and dollars). This currency pair is the ideal investment asset for radical traders who want to trade with large fluctuations on the terminal chart. In addition, compared with a single currency, the pound is more susceptible to the dynamic changes of the US dollar, thus enabling traders to gain more profits in the same trend.
3. USD/JPY Traditionally, although this pair of currencies is usually considered as the most unpredictable foreign exchange trading tool, USD/JPY is actually a very profitable currency pair, especially for experienced traders. Since the yen is often supported by Japanese government intervention, this combination will be an ideal choice for basic analysts.
For short-term and daily transactions, the most important feature of USD/JPY is the collective influence of Japanese institutional investors and asset management industry. In view of Japan's unique peer culture, Japan's asset management industry often advances and retreats in the foreign exchange market, which makes the yen break out at a certain same or technical price, which in turn makes these prices play a key role in supporting or resisting. Once these prices fall, explosive stop-loss orders will flood in, greatly increasing the breakthrough.
USD/JPY is another currency pair that is seriously affected by major USD news. Its features include:
? When it is in a consolidation state, its price changes obviously slow down, and the consolidation range is usually very small;
? When it is in the main trend, it will usually continue to maintain the trend, and there will be no big decline, only a small bear market flag or bull market flag breakthrough;
? In the unilateral market, it is often retraced at the Fibonacci level of 23.6% and 38.2%.