The forex market presents the universal trader with a large number of currency pair arrangements - more than a dozen. As it seems, for the past years, the trendiest pairs are the British pound against the US dollar and the Euro against the US dollar. These arrangements comprise a large percentage of all the deals in a usual trading calendar day. For some grounds those pairs have the forex trader’s notice, and this enormous quantity of deals supplies tradable patterns on a daily basis.
There is no exact reason why those pairs got so popular in the circles of forex traders. The only sound reason is individual penchants. Universal traders seem to favor trading one of those two instead of other mixtures. The thing which connects those two is the US dollar, and as a result of that fact, they are also sharing the same trend patterns. For instance, if the forex response to the news is sanguine for the US economy - both the EUR and the GBP are probable to go bearish.
As any knowledgeable forex trader will say to you, you can’t point one of them out as the healthier one to trade. What you can do is to produce a couple of new trading promises by dropping the US dollar element of the pair, thus creating a cross-pair; i.e. EUR/GBP. Doing that is similar to picturing a quarrel between the two economies, the European vs. the British. My prediction is that the EUR/GBP pair will be very beneficial this year. I base this assumption on the fact that the EU countries are experiencing some financial expansion and with further impending growth, more so than the British financial system.
Andrew Keynes is a long time FOREX trader. A husband and father of two, Keynes has proven himself and built his reputation as an expert to the Foreign Exchange market over many years.
He has successfully served as financial advisor to several large hedge funds and groups and is nowadays busy pushing his latest effort,
www.forexblogs.net,a place on the web where economists from all over the globe congregate and share their trading and investing experiences with each other.
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