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Trader Different types of currencies can be traded in forex trading. Among the most popular currency pairs are 5 currency pairs (pair) such as EURUSD GBPUSD, AUDUSD, USDCHF and USDJPY. However, do not assume that you can use the same strategy for all currency pairs. Because each pair has different characteristics.
For example, the daily price volatility in the USDCHF pair is usually very low, so if you set a profit target of up to 100 pips, it may not be achieved in a day. And even that will only succeed if the trend does not reverse in the opposite direction of your forecast.
On the other hand, the daily price volatility in the EURUSD or GBPUSD pair is quite high. So a profit target of 100 pips is usually easily achieved in one day. Provided that the direction of the price trend is consistent with the results of your analysis.
from these two examples It can be concluded that good analytical skills alone do not guarantee the success of trading positions. Traders need to know the characteristics of the pair as well. Knowing the characteristics of each pair Traders can plan their trading positions in more detail. to increase the probability of successThis article will help you understand the characteristics of the most popular currency pairs among forex traders.
EURUSD pair
Daily Price Volatility: 75-150 pips
Most Volatile Trading Hours: The European session overlaps the American session (2pm – 10pm WIB).
The most influential news: Non-farm payroll (NFP)Gross Domestic Product (GDP), Interest Rate Statements, Federal Reserve Policy Announcements, European Central Bank (ECB) Policy Statements, Central Bank Officials Speeches, Consumer Price Index (CPI), Producer Price Index (PPI) ), US Retail Sales, US Major Durable Goods Orders and the Purchasing Managers Index (PMI).
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The EURUSD pair is the best-selling currency pair on the Forex market, representing the two largest economies in the world. So liquidity is high almost every day. while the volatility is moderate. If there is important news from both regions The effect can spread to other pairs as well. However, if US banks or European banks are experiencing a national holiday, Trading also tends to be quiet and the price volatility is greatly reduced. This phenomenon can be seen from Christmas to New Year.
GBPUSD pair
Daily price fluctuation: 100-300 pips
Most Volatile Trading Hours: The European session overlaps the American session (2pm – 10pm WIB).
Most Influential News: Nonfarm Payroll (NFP), Gross Domestic Product (GDP), Interest Rate Statements, Federal Reserve Policy Statement, Bank of England (BoE) Policy Statement, Keynote Speeches by Federal Reserve Bankers. , Consumer Price Index (CPI), Producer Price Index (PPI), US Retail Sales, UK Retail Sales, UK Claims Change, US Primary Durable Goods Orders and the Purchasing Managers Index (PMI).
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since the middle ages London is the financial center of the world. after World War II New York City became the new financial center alongside London. Therefore, the trading volume between London and New York is very high. In fact, the volatility of GBPUSD may be higher than EURUSD. In addition, the UK’s position in the global economy has been deteriorating from time to time. As a result, UK economic news is rarely delivered. Effect on other currency pairs The exception is GBPUSD and GBP currency pairs (EURGBP, GBPJPY, etc.). However, the impact of the news can result in very large changes in the GBPUSD and GBP pairs crossing in a short time.
AUDUSD pair
Daily price fluctuation: 50-100 pips
The most volatile trading hours: the Asian session with the European session overlaps (06:00-16:00 WIB) and the European-American session overlap (20:00-22:00 WIB). )
Most Influential News: Non-Farm Employment (NFP), Gross Domestic Product (GDP), Interest Rate Statements, Federal Reserve Bank Policy Statement, Reserve Bank of Australia (RBA) Policy Statement, Keynote Speeches by Central Bank Officials. , Consumer Price Index (CPI), Producer Price Index (PPI), US retail sales, US main durable goods orders, Australian unemployment rate, Australian trade balance, China GDP and China trade balance.
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Australia is one of the financial centers in the Asia-Pacific region. and has close trade relations with the People’s Republic of China Therefore, important economic news from China may affect the AUDUSD pair. In fact, AUDUSD is often referred to as the Chinese proxy currency in Indonesia. forex marketBecause the RMB currency cannot be traded freely. (China uses a regulated floating exchange rate system.) In addition, fluctuations in the price of commodities such as crude oil, iron ore, coal and gold can affect the movement of AUDUSD.
USDJPY pair
Daily Price Volatility: 100-150 pips
The most volatile trading hours: the Asian session with the European session overlaps (08:00-16:00 WIB) and the European-American session overlap (20:00-22:00 WIB). )
Most Influential News: Nonfarm Payroll (NFP), Gross Domestic Product (GDP), Interest Rate Statements, Federal Reserve Policy Announcements, Bank of Japan (BoJ) Policy Announcements and Keynotes by Central Bank Officials.
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Like Swiss Franc The Japanese yen has also doubled as one of the safest currencies that investors are interested in when there is turmoil in the global financial system. Because it is considered to worsen the competitiveness of Japanese products in the international market, the BoJ often launches policies or comments aimed at devaluation of its own currency. Traders should also pay attention to these factors when forex trading.
USDCHF pair
Daily price fluctuation: 50-100 pips
Most Volatile Trading Hours: The European session overlaps the American session (2pm – 10pm WIB).
Most Influential News: Nonfarm Payroll (NFP), Gross Domestic Product (GDP), Interest Rate Statements, Federal Reserve Policy Announcements, Swiss National Bank (SNB) Policy Notices and Speeches by Central Bank Officials.
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The price movement of the USDCHF pair is relatively slow compared to other major currency pairs. However, big changes can occur suddenly due to statements by central bank officials or unexpected geopolitical events. The reason is that the Swiss franc doubles as the safe-haven currency that investors around the world need during the turmoil of the global financial system. The security guarantees from Swiss banks are well known. Therefore, foreign-origin funds can immediately increase the value of CHF in a crisis situation. On the other hand, the SNB does not like it when the franc exchange rate increases. Therefore, they often intervene, thereby reducing the value of CHF. This is why the volatility of USDCHF is so limited.
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