The 5 most important currency pairs are usually called the “major pairs” in forex trading. These pairs are the most heavily traded and highly liquid. They all include the US dollar (USD) as either the base or quote currency.
EUR/USD – Euro / US Dollar
- Most traded pair in the world.
- Represents the largest economies: Eurozone and the US.
USD/JPY – US Dollar / Japanese Yen
- Popular for carry trades due to low interest rates in Japan.
GBP/USD – British Pound / US Dollar
- Known as “Cable.” Volatile, influenced by UK economic news and Brexit developments.
USD/CHF – US Dollar / Swiss Franc
- Known as the “Swissie.” Often considered a safe-haven currency.
USD/CAD – US Dollar / Canadian Dollar
- Also called the “Loonie.” Sensitive to oil prices, because Canada is a major oil exporter.
Note: If a pair doesn’t use USD, it’s called a cross-currency pair, such as EUR/GBP.