Which 12 currency pairs are traded frequently in the forex market?

Forex trading is one of the most popular forms of investment, and for good reason. With a daily turnover of over $5 trillion, the forex market offers investors the opportunity to make substantial profits in a short period of time. But before you jump into this lucrative form of trading, it’s important to understand which currency pairs are traded most frequently in the forex market.

The 12 Most Traded Currency Pairs in Forex:

1. EUR/USD: The Euro and US Dollar make up one of the most traded currency pairs in forex. This pair represents the world two largest economies and has faced most volatility since the inception of the euro in 1999.
2. USD/JPY: The US Dollar and Japanese Yen is another popular pair for traders due to its relative stability and tight spreads. It’s also an important barometer for risk sentiment due to Japan’s status as a safe-haven asset during times of economic uncertainty or market volatility.
3. GBP/USD: The British Pound and US Dollar make up this popular pair, which is often referred to as “cable” or “the cable” due to its long history dating back to when an actual cable was used to transmit price data between London and New York City financial markets back in 1866!
4. USD/CHF: The US Dollar and Swiss Franc are another popular pair among traders due to Switzerland’s reputation as a safe-haven asset during times of economic uncertainty or market volatility, much like Japan’s Yen currency does too!
5. AUD/USD: The Australian Dollar (AUD) and US Dollar (USD) are often referred to as “Aussie” by traders because it’s such an important commodity currency that trades heavily with China’s economy – making it one of the more volatile pairs out there!
6. NZD/USD: The New Zealand Dollar (NZD) is often referred to as “Kiwi” by traders because it trades heavily with Australia’s economy – making it another volatile pair that can be quite profitable if traded correctly!
7. USD/CAD: This pair represents two major economies – Canada being home to some major commodities such as oil while also having close ties with America through NAFTA agreements – making this another important barometer for risk sentiment too!
8. EUR/GBP: This cross-pair represents two major currencies from Europe – Euro being home base for many countries while British Pound Sterling representing UK’s economy & financial markets – making this a very interesting & liquid pair too!
9. EUR/JPY: This cross-pair represents two major currencies from Europe & Asia respectively – Euro being home base for many countries while Japanese Yen representing Japan’s economy & financial markets – making this another interesting & liquid option too!
10. GBP/JPY :This cross-pair represents two major currencies from UK & Japan respectively – British Pound Sterling representing UK’s economy & financial markets while Japanese Yen representing Japan’s economy & financial markets – making this yet another interesting option too!
11. AUD/JPY :This cross-pair represents two major currencies from Australia & Japan respectively – Australian dollar being home base for many commodities while Japanese yen representing Japan’s economy & financial markets – making this yet another interesting option too!
12. CAD/JPY :This cross-pair represent two major currencies from Canada & Japan respectively – Canadian dollar being home base for many commodities while Japanese yen representing Japan’s economy & financial markets –making this yet another interesting option too!

These 12 currency pairs represent some of the most actively traded ones on the forex market today, offering investors ample opportunities for profit no matter what their strategy may be. By understanding these different pairs better, you can gain insight into how they may move based on macroeconomic factors such as central bank policy changes or geopolitical events like Brexit negotiations or trade wars between nations like China vs USA etc.. Additionally, technical analysis tools can help you interpret chart patterns more accurately so that you can better predict price movements within these different currency pairs before entering any positions on them accordingly.