28 Major Forex Pairs List: Importance in Trading

The forex market is the largest financial market in the world, with daily trading volumes exceeding $6 trillion. At its core are currency pairs, where one currency is traded against another. Understanding the major forex pairs is crucial for any trader, as these pairs represent the most liquid and widely traded currencies globally.

In this article, we’ll explore the 28 major forex pairs list, focusing on the most important currencies like the US Dollar (USD), Euro (EUR), British Pound (GBP), and others. We’ll also explain what makes these pairs unique and why they dominate the forex market.

What is a Forex Pair?

A forex pair consists of two currencies that are traded against each other in the forex market. The first currency in the pair is called the base currency, while the second currency is the quote currency. The value of a forex pair tells you how much of the quote currency is needed to purchase one unit of the base currency.

For example, in the pair EUR/USD, the Euro (EUR) is the base currency, and the US Dollar (USD) is the quote currency. If the EUR/USD pair is trading at 1.2000, it means that 1 Euro is worth 1.20 US Dollars.

Forex pairs are categorized into three main types:

Major pairs: Include the most traded currencies (e.g., USD, EUR, JPY)
Minor pairs: Pairs that don’t include the US Dollar but involve other major currencies (e.g., EUR/GBP)
Exotic pairs: These involve a major currency paired with a currency from an emerging economy (e.g., USD/TRY)

Understanding how forex pairs work is fundamental for successful trading, as it helps determine how currencies will move relative to each other.

Big Eight Currencies

These currencies are the most traded, highly liquid, and widely recognized globally, forming the backbone of most forex transactions.

USD (US Dollar)

The US Dollar is the most traded currency in the world, making up about 90% of global forex transactions.

EUR (Euro)

The Euro is the second most traded currency and the official currency of the European Union. It is used by 19 of the 27 EU countries and is a key player in global trade and finance.

JPY (Japanese Yen)

The Yen is the most traded currency in Asia and the third most traded globally.

GBP (British Pound)

The British Pound, also known as the “Pound Sterling,” is one of the oldest currencies still in use.

CHF (Swiss Franc)

The Swiss Franc is known for its stability, partly due to Switzerland’s strong economy and political neutrality.

CAD (Canadian Dollar)

The Canadian Dollar is highly correlated with oil prices due to Canada’s status as one of the largest oil producers in the world. It is widely traded, especially against the USD.

AUD (Australian Dollar)

The Australian Dollar is influenced by global commodity prices, particularly metals and minerals.

NZD (New Zealand Dollar)

The New Zealand Dollar is closely tied to commodity exports, especially dairy and agriculture.

These Big Eight currencies dominate the forex market, and understanding their characteristics, economies, and the factors that influence them is key to successful forex trading.

Criteria for Major Forex Pairs (What Makes the Majors Unique?)

Major forex pairs stand out due to several key factors that make them attractive to traders:

Liquidity: Major pairs are highly liquid, meaning they can be bought or sold easily without large price fluctuations. This makes them more predictable and lowers trading costs.
High Trading Volume: These pairs have the highest trading volumes, resulting in more opportunities and tighter spreads.
Economic Influence: Major pairs are tied to the world’s largest economies, like the US, EU, and Japan. Economic events in these regions directly impact currency movements.
Global Trade: The currencies involved are widely used in international trade and investments, providing stability and less volatility.
Stability: Major pairs tend to be more stable and less volatile compared to minor or exotic pairs, making them suitable for both short-term and long-term strategies.