7 Major Forex Pairs and What is unique for each?

Here are the 7 major Forex pairs—the most traded currency pairs in the world—and a detailed explanation of how each one behaves differently so traders can better understand how to approach them.

Major pairs all include the US Dollar (USD) because it is the world’s reserve currency, drives global trade, and dominates international finance. Although they are all “majors,” each pair has its own volatility profile, reaction to news, spread cost, and trading personality.

This is not financial advice, only compilation of what happened to be in the past.

1. EUR/USD – The King of Forex

Why It’s Unique

• Most liquid currency pair in the world
• Often has the lowest spreads
• Responds strongly to Eurozone data and US macroeconomics
• Price action tends to be smooth, making it popular for beginners and advanced traders

What Traders Should Know

• Moves heavily during London and New York sessions
• Best for trend followers and intraday traders
• Lower volatility compared to GBP/USD and USD/JPY
• Responds to ECB interest rate decisions and US NFP very clearly

2. GBP/USD – “The Cable”

Why It’s Unique

• Known for high volatility and large moves
• Liquidity is high but not as deep as EUR/USD
• UK news (BoE decisions, inflation reports) cause sharp spikes

What Traders Should Know

• Daily ranges can be 50–150 pips
• More sensitive to political events (Brexit aftermath still influences it)
• Best for experienced traders who can handle whipsaws

3. USD/JPY – The Safe-Haven Pair

Why It’s Unique

• Moves largely based on interest rate differentials
• The Japanese Yen (JPY) is considered a safe-haven currency
• Traders often see unusual moves during global risk-off events

What Traders Should Know

• Tight spreads but sudden spikes possible
• BoJ (Bank of Japan) interventions can cause explosive moves
• Great for breakout and momentum strategies

4. USD/CHF – The “Safe-Haven vs Safe-Haven” Pair

Why It’s Unique

• Swiss Franc (CHF) is also a safe-haven currency
• Often moves opposite to risk sentiment
• Liquidity is good but not as high as EUR/USD or USD/JPY

What Traders Should Know

• Tends to be range-bound more often
• Correlates negatively with EUR/USD
• Spreads slightly higher, but still manageable

5. AUD/USD – The Commodity Currency Pair

Why It’s Unique

• Australia’s economy depends on minerals, gold, iron ore
• Commodities and China’s economy heavily influence it
• More predictable swings during Asian session

What Traders Should Know

• Great for traders who prefer slower, more technical movements
• Sensitive to:
  • Gold prices
  • Chinese manufacturing data
  • Risk sentiment
• Works well with trend-following strategies

6. USD/CAD – Oil-Driven Pair

Why It’s Unique

• Canada is a major oil exporter, so CAD rises when oil rises
• Called the “Loonie”
• Moves strongly during US data releases and oil market volatility

What Traders Should Know

• Best for traders who track WTI crude oil
• Has moderate spreads
• More volatile during New York session due to Canadian and US market overlap

7. NZD/USD – The “Kiwi”

Why It’s Unique

• Commodity currency like AUD, but more volatile
• New Zealand is a major exporter of dairy and agricultural goods
• Very sensitive to global risk-on sentiment

What Traders Should Know

• Moves during Asian session like AUD/USD
• Tends to have consistent trends but lower liquidity
• Responds heavily to RBNZ rate decisions