Lets talk about what is the best pair to trade on forex. There are 7 main currencies: usd, gpd, cad, chf, jpy, aud and nzd. Actually I think any pair could be profitable. All you need to do is follow news of the appropriate countries. You should keep in mind that every currency has its specifics.
Aud and Nzd are very simillar because they are close to each other, have similar laws and they provide world with valuable such as gold.
Cad stands for oil and is depend on the US as well.
Jpy has very advanced industry and its also depend on US market because it has the biggest consumption in the world (approx. 20%).
Chf has very reliable banking area. But its currency is under big pressure lately. National bank of Switzerland goes on a very big interventions. You have to follow economic factors to foresee what will be the next step of their bank. Otherwise you can get into trouble.
Last two currencies Eur and Gbp are the most liquid on forex. They show how real people could move the exchange rate in euphoria during bull market or in panic during bear market.
Eur/Usd is to most liquid pair in forex. It is very good for speculators. You could feel safe trading this currency. All the world is following on this pair. If there will be any movement right away you could read the news explaining why it happened. It is very important to understand every move. After several months or years you could react accordingly on any economic news involving euro-zone or usa.
But my favorite currency pair is Gbp/Usd. I believe its the most technical pair. After a few months of testing my strategies I found out that it gives me more profit in front of Euro. While I was reading about english pound I learned that englishmen are the biggest speculators in the world together with americans. While euro rate is very important to the whole europe economy and industry, pound isn't affected so hard. Euro should keep the rate that will be reliable for all EU countries. So politics is much involved in the Eur/Usd rate. On the contrary UK could live on its own account. It is simillar how weak or strong USD doesn't affect US citizen lifes. The inflation inside USA is about 2% only and their income doesn't change because of currency rates.
Sorry for my poor english. I will try hard to make it more readable :)
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