Profitable Currency pairs in the Forex

When a trader engages in the forex trade, he or she is particularly concerned about the profitable currency pairs in the forex. This issue then, is vital to one's success in the forex. Just like any other investment, an investor, in this case a forex trader, wants the most profitable investment.

However, when it comes to trading in this kind of market, some currency pairs in the forex market stand out than the rest. Their historical trends show an impressive performance that will certainly suit your kind of trading. Hence, a list is prepared containing the lucrative currency pairs in the forex. These are the EUR/USD, the JPY/USD, and the GBP/US. A short explanation for each is included.

The EUR/USD Among the currency pairs in the forex, the EUR/USD is a favorite among the forex traders. This is because demand for this pair is particularly stable. Also, there is easy access to information about their market forces that drive the EUR/USD.

The US dollar is the world's strongest currency, backed up by the fact that the dollar is the standard of many central banks around the world. Hence, a good currency pair is almost anything that includes the US dollar. Since the European economy is one of the world's largest, and has the second-strongest currency, the pair EUR/USD is certainly one of the highly-stable currency pairs in the forex.

The JPY/USD The JPY/USD is another one of the strong currency pairs in the forex. Japan has one of the largest economies in the world. The Bank of Japan is known to have the largest amount of dollar reserves. Hence, trading in the pair of JPY/USD is also very profitable, as government intervention on the macroeconomic level is intense in Japan.

The JPY/USD pair is known to be highly sensitive to interest rates. This is because many investors and lenders put also place large amounts of their money on Japanese investments, making the Japanese yen one of the strongest currency in Asia.

Also, Japan is known to prioritize its exported goods. It focuses mainly on obtaining a trade balance, if not a surplus. Aside from that, Japan is known to be the biggest lender among all countries, as compared to the US, which is the biggest borrower. Hence, demand for the Japanese yen tends to be high, and it is also shown by historical data.

The GBP/USD The GBP/USD is another lucrative currency pair in the forex. Notice that the Great British Pound is also of great value in the forex market. However, economists have noticed the trading the GBP/USD is somewhat highly-leveraged.

Past trends have shown that the pair GBP/USD tends to be volatile. Many traders who trade at GBP/USD are usually in want of some action. However, this pair is certainly the most stable among the highly-leveraged trades.

Notice that the recommended and profitable currency pairs in the forex market are the ones that set the standards of wealth among all the countries. However, traders who are curious to try different currency pairs in the forex are not discouraged, in fact, it is better that a trader find out the best currency pair to give himself an edge on the market.