5 Most-Popular Forex Majors

Major currency pairs are those that are actively traded in the global forex market. Today, the list varies, but it is safe to say that the major currency pairs are currently comprised of USD/CAD, EUR/USD, USD/JPY, GBP/USD, AUD/USD, NZD/USD, and USD/CHF. Investors highly liquid and stable.

1. EUR/USD

The EUR/USD currency pair is perhaps one of the most interesting pairs. Last year, the euro cratered to more than a 20-year low and reached parity with the greenback (the dollar). Nearly everyone was bearish on the euro amid an energy crisis and a plunging economy. Today, however, market analysts turned bullish on the currency for several reasons: a warmer-than-expected winter, better-than-expected economic data, and the European Central Bank (ECB) possibly ending its quantitative tightening program in the spring on a decent eurozone economy.

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2. GBP/USD

Investors have soured on the British pound, primarily due to out-of-control inflation, a Bank of England (BoE) that is terrified of the gilt (bond) market, and a slowing economy. This currency pair trades in either direction based on fiscal and monetary policy, akin to what happened this past fall when the pound cratered and the yields spiked at an alarming size and pace. But some industry observers say that investors should not be surprised if they notice a sideways trend.

On the technical side of things, the pound sterling is the third most-traded currency, behind the U.S. dollar and the euro. This is a double-edged sword: volumes are high, but the price can fluctuate because of its global influence.

3. USD/CAD

When it comes to the USD/CAD currency pair, traders will monitor what is happening on the south side of the U.S.-Canada border than what might be happening in the Great White North. Despite energy commodities soaring in 2022 and Canada maintaining a current account deficit, the loonie failed to catapult to the moon last year. It was all about the greenback. Now, the buck has slumped considerably since November on expectations that the Federal Reserve will begin to slow down the pace and size of rate hikes, but the U.S. dollar could resuscitate a modest rally on risk aversion amid volatility in the financial markets and any re-acceleration of inflation.

Right now, the spread is immense, as the pair trades above 1.30.

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4. USD/CHF