Currency pairs are the most liquid instruments of the international financial market. Daily Forex volume exceeds $5 trillion. Private traders have the opportunity to work on Forex thanks to the services of a broker.
The dollar is the main currency of international trade, so in the Forex market, the main volume of trading falls on pairs with the dollar:
EUR/USD (Euro – US Dollar)
USD/JPY (US dollar – Yen)
GBP/USD (pound sterling – US dollar)
AUD/USD (Australian Dollar – US Dollar)
USD/CHF (US dollar – Swiss franc)
USD/CAD (US dollar – Canadian dollar)
These currency pairs are less volatile and more predictable. Their trends are dictated by the law of supply and demand, are dependent on the policies of central banks and the general economic situation in world trade and specific countries.
Also in the Forex market cross rates are traded – these are the ratios of currency pairs to each other, which is determined through their value to the US dollar. The most popular cross-rates: EUR/CHF (Euro/ Swiss franc); EUR/JPY (Euro/Japanese Yen); EUR/GBP (euro/pound sterling).
Exotic currency pairs are the ratio of the main currency (USD, EUR, JPY) to the currency of a country with a developing economy, such as South Africa, Russia, Brazil, etc.