There are many different currency pairs you can trade in the forex market. Besides USD/JPY, you can also try GBP/USD, AUD/JPY, and EUR/USD. All these currencies have their pros and cons. It is best to research each currency pair carefully before deciding to trade it.
USD/JPY
If you are looking for exposure to the Asian market, USD/JPY is the currency pair to invest in. USD/JPY pairs are characterized by low volatility and a high degree of stability. The USD/JPY pair measures the amount of Japanese yen needed to buy one US dollar.
The US dollar is one of the most widely traded currency pairs in the world. It has been influenced by the political sentiment between the United States and the Far East and tends to be correlated positively with USD/CHF and USD/CAD. Among the more popular currency pairs, USD/JPY and EUR/USD have a very strong correlation. However, beginners should be wary of trading in these currency pairs. They are best left to the more experienced traders.
Major currency pairs fluctuate according to the amount of trade between the countries. These currency pairs are naturally associated with countries with higher financial powers and high-volume trade across the globe. Besides, most of these currency pairs are the most volatile and can experience large fluctuations during the day.
EUR/USD
The Euro is the most widely traded currency in Kenya, with the US dollar a close second. The euro is highly regarded globally, and investors are attracted to it. This fact has resulted in the Euro/USD becoming one of the most popular currency pairs in the country.
Traders typically trade the major currency pairs (the USD/EUR pair) in order to make profits. These pairs represent the world’s two largest economies and are the most commonly traded. The EUR/USD quote is currently at 1.3560, meaning that one Euro unit is equal to 1.3560 USD. This means that a buyer will pay 1.3560 USD for one unit, and will receive that amount when they sell it.
Trading the EUR/USD currency pair is a popular way to make money online. The price movement is relatively small, which makes it a perfect currency pair for those who don’t want to take too much risk. Traders can also learn more about the EUR/USD currency pair through online sources, which makes it easy to make informed decisions.
GBP/USD
The GBP/USD is one of the most widely traded currency pairs in Kenya. While the dollar is involved in all currency pairs, the pound has its own unique characteristics. Its status as the world’s reserve currency and its status as the most stable currency are important reasons to trade it. The British pound is also heavily influenced by events in the United States, which are reflected in this currency pair. Traders need to assess how the decisions of the Bank of England stack up against those of the Federal Reserve.
Global economic growth, interest rates, and geopolitical events are also factors that impact FX markets. For example, if a Japanese conglomerate purchases a UK chipmaker for PS30 billion, it will need to buy GBP and sell JPY. Exporters and importers also use the currency pair for hedging purposes. Traders in the currency pair may be retail or institutional.
AUD/JPY
The Australian dollar is linked to agricultural products, minerals and exports. However, investors have traditionally preferred the Japanese yen as a safe haven currency during periods of economic uncertainty. That is why the price movements of the AUD/JPY pair can be dramatic depending on the global economic outlook.
The Australian dollar is the fifth most traded currency on the foreign exchange market. It is also known as the “Aussie.” The Australian dollar is often used in cross currency trading because it does not involve the US dollar. Its historically high interest rates and freedom from state intervention make it a popular choice for traders. It is also a popular choice for carry trade.
The major currency pairs fluctuate based on the volume of trade between the two countries. The more trading volume in one country, the more volatile the currency pair. Therefore, major currency pairs are usually the most volatile. This means that they can undergo the biggest fluctuations in price during the day.
USD/CHF
USD/CHF is one of the most widely traded currency pairs in Kenya. It tends to be negatively correlated with EUR/USD and GBP/USD, which makes it an appealing option for traders. The price movement of the USD/CHF is largely dependent on monetary policy. However, it is not the only currency that can be traded on Kenya’s currency exchange market.
The major currency pairs fluctuate according to trade volumes between countries. As such, they are naturally associated with countries with greater financial power and a higher volume of global trade. Nevertheless, these currencies are also among the most volatile and can experience large price fluctuations in a single day.
