What are the most active forex trading currency pairs to trade? I know this question haunts many forex traders and most traders are trying to find the answer. So do you have any idea what are the most actively traded forex trading currency pairs? If you don’t, you will need to continue reading this article and find out if you are trading them with your forex trading system, either Forex Ambush or FAP Turbo.
Many of the traders only react based on what most people think are the most active currency pairs and not some statistics. So I’m going to give you some data here so you can get clear on the numbers and this was taken from a forex volume survey (based on Oct 2008).
Do you know that the busiest shopping center is in Europe? And if you guess correctly… yes… it’s London! It has a transaction of close to $1.5 billion daily on average. It is even more than New York, which is double the figures behind London. However, New York is still more than the total numbers for Sydney and Singapore combined. By the way, if you think that Singapore is a very small country, yes it is, but the transactions for currency trading is one of the largest, mostly from institutions and banks.
I’m sure you’ve heard somewhere that in the forex market, the spot forex market is the most important component. Well, that’s not entirely true here. It is the exchange market that is actually the largest part of the forex market. If you think carefully, you will agree that the swap market is the largest due to the huge international trades and capital inflows and outflows. Going back to spot trading, if it’s the majority of forex trading, then it has to be in New York.
In London, EUR/USD is taking up around 40% of trades with USD/JPY around 15%. The rest of the pairs like EUR/JYP, USD/CHF make up the rest of the percentage. In New York, EUR/USD is trading for a third of the market, while USD/JPY is around 20%. EUR/JPY, GBP/USD and USD/CAD make up the rest of other trading activities at 75%. In Sydney, of course, AUD/USD is the most traded pair, while USD/JPY and EUR/USD come in second.
In summary, the most active traded currency pairs are EUR/USD and USD/JPY, followed by GBP/USD and EUR/JPY. This means that there is more liquidity in these pairs as well and you may want to include them in your forex strategy if you haven’t already.