The foreign exchange market is the most traded financial market, with a high trade volume of 6 trillion daily. Many novice traders start trading in this market due to fewer fund requirements and more liquidity.
To help such forex traders, we have discussed the best forex currencies for trading in 2022. They can choose the one that suits their trading needs and have successful market investments.
Forex trading is all about currency investments, and traders can buy and sell them in currency pairs to earn from the exchange rate of these currencies. So, let’s hop in and analyze these currencies of 2022.
Best Forex Currencies for Trading in 2022
The best forex currencies for trading in 2022 are combined in pairs for easy investments. We’ll be exploring the best forex currency pairs in the market and help traders in a successful trading experience.
Traders can go for the following five best currency pairs for trading in 2022:
- EUR/USD
- USD/JPY
- GBP/USD
- EUR/GBP
- USD/CHF
EUR/USD
EUR/USD stands for European euro and the United States dollar. It is a major currency pair and is highly traded in the forex market. Both the countries are significant parts of the economy and thus have good market worth.
The currency pair is highly liquid and has the lowest spread with most of the forex brokers. It has the ability to place a large number of trades in a day and help traders earn quickly from the market.
Traders can invest in the currency pair for short or long market durations. Thus, scalping, day trading, or position trading, any strategy can be used with it.
The current market rate of the currency pair is 1.0585.
USD/JPY
USD/JPY comprises two currencies US dollar and the Japanese yen. The major currency pair has high market liquidity and is an important part of the forex currency pairs. The currency pair has low spreads and has a smooth trend compared to other currency pairs.
It has been sensitive to the political sentiments of the countries and has been positively correlated with USD/CHF and USD/CAD.
USD is a highly traded currency worldwide, while JPY is a popular currency in the Asian market. The exchange rate of the pairs is decided by the interest rates set by the USD federal reserve and the Bank of Japan.
The current market exchange rate of the currency pair is 127.726.
GBP/USD
The major currency pair is made up of the British pound and the US dollar. The popularity of the currency pair lies in the profitable pips and jumps in the currencies of the countries.
It is a volatile currency pair as the pip, exchange rate, and price of the currencies keep fluctuating. This market shift in the currency pair could help traders earn high profits when it’s in favour but can have a great loss when it goes unfavourable.
Most traders of the currency pairs are day traders or such small position strategies that help earn quick profits from the market volatility. The currency pair’s current market price is 1.25.
EUR/GBP
EUR/GBP is a minor currency pair as it does not have USD currency. Euro and the British pound are the best currency pair to invest in with appropriate market conditions. The reason for its high trade in the market is the strong trade agreements historically.
The Brexit of the Britain government made a great impact on the price of the currency pair and was a time when traders were highly interested in the currency pair. The exchange rate of the pair relies on the regional banks of the countries.
It is a volatile pair and can bring good profits for the traders. The current market worth of EUR/GBP is 0.8495.
USD/CHF
The currency pair is a combination of the US dollar and the Swiss Franc. The currency of Switzerland is considered a safe haven for the traders and thus ranges as most traded currency pairs in the forex market.
When the market is highly volatile, many traders go to invest in USD/CHF due to the stability it has. The predictability of the currency pair is high, and traders can easily invest in it.
The currency market value of the currency pair is 0.9732. Traders can go for this safe currency pair to invest and have market profits.
Conclusion: Best forex currencies
The best forex currencies for trading in 2022 could be many or very few, depending on the market factors. Traders, therefore, have to understand the forex market and the present conditions to trade.
The article has discussed the most traded and the best currencies of 2022 that traders highly invest in. Traders can check the market worth, their trading, and factors impacting and invest in them to make quick profits in the forex market.
