The Most Frequently Traded Forex Rates
When beginner traders enter the foreign exchange market they will notice some forex rates are traded more often than others. It is vital to their forex trading career that they understand as much about the market and these currencies as possible. Once you have attained this deeper knowledge, the trading market will be an easier place to navigate.
Canadian Dollar forex rates
The Canadian dollar, also known as a ‘loony’ is controlled by the central Bank of Canada. A trade using this currency usually sees 40 pips per day. However, one of the most unique aspects of the loony is that its prices are associated with crude oil prices. This is due to Canada being one of the most prominent crude oil exporters worldwide.
US Dollar forex rates
The US dollar is arguably the most frequently traded currency on the foreign exchange market and is often referred to as ‘the greenback’ due to its green colouring. The greenback is controlled by the Federal Reserve, the acting central bank for the United States of America. Due to its current strength in the market, the US dollar has been noted as the global reserve currency and part of the world’s largest economy. The USD forex rates are generally affected by fluctuations in central bank and interest rates, as well changes in economic fundamental data.
British Pound forex rates
The British pound is controlled by the central Bank of England and was the global reserve currency before World War II. It is one of the more volatile currencies on the market and is often referred to as ‘the cable’ by traders. Swings for this currency range from 20 to 120 pips per day, with the most volatile period being the hours of the European trading session. It should be noted that the pound sees minimal movement during the Asian trading session.
The Euro forex rates
The Euro has been noted as the US dollar’s most competent rival due to the steady increase in its popularity and value. It is controlled by the European Central Bank and is one of the youngest currencies in the world. Similar to the British pound, the Euro is quite volatile and shows swings of 40 pips on a normal day, 60 pips on volatile days. Euro-based pairs are best traded during the European trading sessions which run from 2am – 11am EST.
The Swiss Franc forex rates
The Swiss franc is controlled by the Swiss National Bank, also known as the Central Bank of Switzerland. It is one of the more stable currencies and does not move heavily during trading sessions. The average trading rate of the Swiss franc is generally 35 pips per day. It should be noted that this currency is most often seen during the European trading sessions.
The Japanese Yen forex rates
The Japanese yen is controlled by the Bank of Japan and is part of the world’s second largest economy. It is often traded as a part of the carry trading strategy due to the low interest rates on the country. Due to this, the Yen shows erratic trends ranging from 40 – 150 pips per day. Should you trade with a Yen currency pairing, be prepared for volatility. However, this currency is least volatile during the European and American session crossover.