From EUR/USD to USD/JPY and GBP/USD, forex traders around the world have countless currency combinations to choose from. Trading in globally trusted and most traded currency pairs in the South African forex market is a wise idea, especially for foreign exchange investors. With forex trading, volatility is an ever-present double-edged sword. Your ability to make a profit depends on how you use it to your advantage and avoid being caught off guard. One proven strategy to avoid unwanted surprises is to understand which major pairs of currency are most volatile so that you protect your capital when trading. This post will discuss the most common volatile forex currency pairs in South Africa today to help you navigate this tricky market like a pro.
Volatile forex pairs create opportunities for great returns because of the price swings. However, it’s worth noting that such opportunities usually come with risks. Therefore, traders must act cautiously when trading the most volatile forex major pairs Here is a rundown of the most popular currency pairs in South Africa’s vast forex landscape.
1. EUR/USD
Studies show that the euro and US dollar pair (EUR/USD) is the most traded foreign exchange currency in the world, accounting for a staggering 24% of global forex trades, and South Africa is no exception. One reason that explains the popularity of this forex pair is that the currencies come from two of the world’s largest economies, the European Union and the United States of America. EUR/USD’s large daily trading volume enables the pair to generate high liquidity results, even in tight spreads. These two metrics are key factors that influence traders’ decisions as high trades can occur with minimal impact on the market. The best forex trading platforms, like Weltrade, provide traders with limitless access to the rapidly evolving forex market. Whether you want to trade EUR/USD or GBP/USD, you can click here to investigate opportunities to diversify your portfolio and transform your trading strategies on the world’s leading forex website.
2. US Dollar/South African Rand (USD/ZAR)
The South African rand becomes highly volatile when paired with the US dollar. Since the country’s economy is mainly driven by commodity prices, such as gold, and political trends, the national currency (the rand) often fluctuates steeply against the American dollar. USD/ZAR is one of the top forex pairs that experiences massive price swings daily, creating enormous profit opportunities and high risks for traders.
3. USD/JPY
The US dollar/Japanese yen pair (USD/JPY) is sometimes called the gopher. It’s among the most traded forex pairs on the market, representing up to 13% of everyday foreign exchange transactions. The similarity between the USD/EUR pair and the USD/JPY pair can be seen in their high liquidity. While the yen leads the Asian market as the most traded currency, the US dollar also ranks high as the world’ s most heavily traded currency. The Japanese central bank controls the interest rates for their economy, and this tends to impact the value of the yen when compared with the US dollar.
South Africa boasts a wealthy forex market. Whether you’re a beginner with a small account or a pro with large capital, you can make profit if you can accurately predict which currency will increase in value or depreciate against another currency. Now that you know the major forex pairs in SA, you can open a demo account on the Weltrade forex website to get started with any small investment.