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The seven majors of the forex market are the most widely traded currency pairs in the world. These pairs are:
*EUR/USD: Euro against the U.S. dollar
*USD/JPY: U.S. dollar against the Japanese yen
*GBP/USD: British pound against the U.S. dollar
*USD/CHF: U.S. dollar against the Swiss franc
*AUD/USD: Australian dollar against the U.S. dollar
*USD/CAD: U.S. dollar against the Canadian dollar
* NZD/USD: New Zealand dollar against the U.S. dollar. .
These currency pairs are considered to be the "majors" because they represent the world's largest economies and are widely traded. They also tend to have the tightest spreads and the most liquidity, which makes them attractive to traders. The EUR/USD is considered the most widely traded pair and also the most liquid, followed by USD/JPY and GBP/USD. Trading on these majors currency pairs can be done around the clock and have the most accurate and reliable price feeds and this is why most traders prefer them, but it's worth noting that these pairs can be also highly volatile, and it's important to have a proper understanding of the market and the risks involved before investing. More elaboratively:
EUR/USD: This is the most widely traded currency pair in the world and is considered to be a bellwether for the global economy. The euro is used by the European Union (EU) and the U.S. dollar is the world's reserve currency. The value of this pair is heavily influenced by economic and political events in Europe and the United States.
USD/JPY: This pair is considered to be a barometer of risk sentiment in the market. The Japanese yen is often seen as a safe-haven currency, so when risk sentiment is high, the value of this pair tends to fall. Conversely, when risk sentiment is low, the value of this pair tends to rise.
GBP/USD: This pair is known as "cable" and is heavily influenced by economic and political events in the United Kingdom and the United States. The British pound is also considered to be a barometer of risk sentiment in the market, similar to the Japanese yen.
USD/CHF: This pair is known as "swissie" and is heavily influenced by economic and political events in Switzerland and the United States. The Swiss franc is also considered to be a safe-haven currency, similar to the Japanese yen.
AUD/USD: This pair is heavily influenced by economic and political events in Australia and the United States. The Australian dollar is considered to be a commodity currency, so its value is heavily influenced by the price of commodities such as gold and oil.
USD/CAD: This pair is heavily influenced by economic and political events in Canada and the United States. The Canadian dollar is also considered to be a commodity currency, so its value is heavily influenced by the price of commodities such as oil.
NZD/USD: This pair is heavily influenced by economic and political events in New Zealand and the United States. The New Zealand dollar is also considered to be a commodity currency, so its value is heavily influenced by the price of commodities such as dairy product
It's important to note that these pairs are also subject to multiple factors such as Central bank decisions, geopolitical factors and even natural disasters can affect the value of these currencies. It's important to have a proper understanding of the market and the risks involved before investing.
*EUR/USD: Euro against the U.S. dollar
*USD/JPY: U.S. dollar against the Japanese yen
*GBP/USD: British pound against the U.S. dollar
*USD/CHF: U.S. dollar against the Swiss franc
*AUD/USD: Australian dollar against the U.S. dollar
*USD/CAD: U.S. dollar against the Canadian dollar
* NZD/USD: New Zealand dollar against the U.S. dollar. .
These currency pairs are considered to be the "majors" because they represent the world's largest economies and are widely traded. They also tend to have the tightest spreads and the most liquidity, which makes them attractive to traders. The EUR/USD is considered the most widely traded pair and also the most liquid, followed by USD/JPY and GBP/USD. Trading on these majors currency pairs can be done around the clock and have the most accurate and reliable price feeds and this is why most traders prefer them, but it's worth noting that these pairs can be also highly volatile, and it's important to have a proper understanding of the market and the risks involved before investing. More elaboratively:
EUR/USD: This is the most widely traded currency pair in the world and is considered to be a bellwether for the global economy. The euro is used by the European Union (EU) and the U.S. dollar is the world's reserve currency. The value of this pair is heavily influenced by economic and political events in Europe and the United States.
USD/JPY: This pair is considered to be a barometer of risk sentiment in the market. The Japanese yen is often seen as a safe-haven currency, so when risk sentiment is high, the value of this pair tends to fall. Conversely, when risk sentiment is low, the value of this pair tends to rise.
GBP/USD: This pair is known as "cable" and is heavily influenced by economic and political events in the United Kingdom and the United States. The British pound is also considered to be a barometer of risk sentiment in the market, similar to the Japanese yen.
USD/CHF: This pair is known as "swissie" and is heavily influenced by economic and political events in Switzerland and the United States. The Swiss franc is also considered to be a safe-haven currency, similar to the Japanese yen.
AUD/USD: This pair is heavily influenced by economic and political events in Australia and the United States. The Australian dollar is considered to be a commodity currency, so its value is heavily influenced by the price of commodities such as gold and oil.
USD/CAD: This pair is heavily influenced by economic and political events in Canada and the United States. The Canadian dollar is also considered to be a commodity currency, so its value is heavily influenced by the price of commodities such as oil.
NZD/USD: This pair is heavily influenced by economic and political events in New Zealand and the United States. The New Zealand dollar is also considered to be a commodity currency, so its value is heavily influenced by the price of commodities such as dairy product
It's important to note that these pairs are also subject to multiple factors such as Central bank decisions, geopolitical factors and even natural disasters can affect the value of these currencies. It's important to have a proper understanding of the market and the risks involved before investing.
