Currency pairs represent the exchange rate between two different currencies. They are quoted as the relative value of one currency against another. For example, in the currency pair EUR/USD, the euro is the base currency, and the US dollar is the quote currency. The forex market, where these currency pairs are traded, is the world’s largest and most liquid financial market.
Currency pairs are divided into three main categories: major currency pairs, minor currency pairs, and exotic pairs.
Major Pairs:
Major currency pairs are the most traded and liquid, such as EUR/USD, USD/JPY, GBP/USD, and USD/CHF. These pairs usually involve the US dollar and are known for their high trading volumes and liquidity.
- EUR/USD (Euro/US Dollar)
- USD/JPY (US Dollar/Japanese Yen)
- GBP/USD (British Pound/US Dollar)
- USD/CHF (US Dollar/Swiss Franc)
- AUD/USD (Australian Dollar/US Dollar)
- USD/CAD (US Dollar/Canadian Dollar)
- NZD/USD (New Zealand Dollar/US Dollar)
Minor Pairs:
Minor currency pairs do not involve the US dollar but include other major currencies like EUR/GBP, EUR/CHF, and GBP/JPY. These pairs are less liquid than the major ones but are still widely traded.
- EUR/GBP (Euro/British Pound)
- EUR/CHF (Euro/Swiss Franc)
- GBP/JPY (British Pound/Japanese Yen)
- AUD/JPY (Australian Dollar/Japanese Yen)
- NZD/JPY (New Zealand Dollar/Japanese Yen)
- CAD/JPY (Canadian Dollar/Japanese Yen)
Exotic Pairs:
Exotic pairs, such as USD/TRY and USD/ZAR, involve currencies from emerging or smaller economies and are less liquid, often leading to higher volatility and wider spreads.
- USD/TRY (US Dollar/Turkish Lira)
- USD/ZAR (US Dollar/South African Rand)
- USD/MXN (US Dollar/Mexican Peso)
- USD/THB (US Dollar/Thai Baht)
- USD/HKD (US Dollar/Hong Kong Dollar)
- EUR/TRY (Euro/Turkish Lira)
- USD/SEK (US Dollar/Swedish Krona)
- USD/NOK (US Dollar/Norwegian Krone)
- USD/DKK (US Dollar/Danish Krone)
- USD/PLN (US Dollar/Polish Zloty)
- USD/CZK (US Dollar/Czech Koruna)
- USD/HUF (US Dollar/Hungarian Forint)
- USD/RUB (US Dollar/Russian Ruble)
- USD/INR (US Dollar/Indian Rupee)
- USD/CNH (US Dollar/Chinese Yuan Offshore)
- EUR/ZAR (Euro/South African Rand)List
- GBP/ZAR (British Pound/South African Rand)
- EUR/CZK (Euro/Czech Koruna)
- EUR/SEK (Euro/Swedish Krona)
- EUR/NOK (Euro/Norwegian Krone)
- GBP/TRY (British Pound/Turkish Lira)
- AUD/MXN (Australian Dollar/Mexican Peso)
- NZD/THB (New Zealand Dollar/Thai Baht)
- CAD/SGD (Canadian Dollar/Singapore Dollar)
A comprehensive list of currency pairs includes major pairs like EUR/USD and USD/JPY, minor pairs like EUR/GBP and GBP/JPY, and exotic pairs like USD/TRY and USD/ZAR. Each category has unique characteristics and trading dynamics, influenced by various economic indicators, geopolitical events, and market sentiment.