Top Currency Pairs for Trading: Profitable Options & Market Insights

This article is a recommendation to current currency pairs that may be profitable in the market. Foreign currency pairs are traded in high or low volume, depending on economic conditions for the countries represented in the currencies.

Euro/Yen

Based on the volume and liquidity in the market the major highly traded currency pair has been the euro/yen cross pair. This is one of the most liquid and volatile markets. As a trader, you will be able to find short term trading opportunities. Keep in mind that while this is highly liquid, it is also very volatile, therefore more risky.

During the height of the financial crisis, that has been spanning into this year from 2008, the euro/yen offered traders a great vehicle to trade volatility, as well as major trends. The major trend has been with the unwinding of the yen carry trade while the dollar has experienced near zero percent interest rates. This forced buying into the yen, therefore, created a foreign exchange wind tunnel that eventually led to the rise in the Japanese yen. During times of economic prosperity and general risk taking, the investor should go long the euro/yen cross pair.