Home Currency Pairs
With the USD being the most major trading currency, the USD/JPY pairing offers ease of use and flexibility. Because of its influence around the world, there are abundant financial news and reports about the USD that is within your reach. The JPY is also an influential currency, making your trades simple with the USD/JPY pairing.
With the Euro being the currency of 18 countries in Europe, its influence is often compared to that of the USD. The main influencer of the Euro is economic powerhouse Germany, and therefore studying German economic indicators will help you make your trade.
The British Pound is one of the most important currencies in the world. Although Great Britain is not in the European Union, the GBP's influence over trade on the other 28 EU countries cannot be stressed enough. Trading of the GBP will require intermediate expertise, as the trading volumes tend to be smaller.
Australia is an important country that is extremely rich in natural resources. Many emerging countries like China have begun massive trade volumes with Australia, making the AUD a very attractive currency from now on. In addition, risk is low as Australia is economically and politically stable, therefore the AUD is a currency to watch closely.
The Euro/USD pairing is perhaps the most common exchange rate pair, with the highest volumes traded by all traders. Information on both currencies are readily available, which makes trading a whole lot easier. This is suitable for almost all traders.
There are deep ties between the GBP and USD, as both Great Britain and USA work jointly on many things economical and political. The movement of this pairing is very similar to that of EUR/USD. Because of the GBP's flow volumes, many users tend to place large trades on the GBP/USD pairing, capitalizing on volatile movements in the market.
The market trade volumes of AUD/USD is much greater than that of AUD/JPY. Australia has deep trade ties with China, as Australia is a country rich in natural resources and as a result the AUD/CNY is gaining strength and popularity. However, as a replacement for the AUD/CNY, AUD/USD is the next best choice should in any event the Shanghai Stock Market falls in value, making the AUD/USD an excellent choice for trades.