What are the best currencies to trade?
Let’s start with the fact that there are 3 groups of currency pairs:
1. Major Currency Pairs (Majors)
2. Cross-currencies (Crosses)
3. Exotic Pairs (Exotics)
The major currency pairs are pairs which include the US dollar and the currencies of the most significant countries (or groups of countries). Here they are:
You can trade all pairs from the above, except for USD/CAD. USD/CAD is not well predictable with the help of technical analysis and is suitable unless only for night scalping.
Also, I don’t advise trading USD/CHF and USD/JPY. USD/CHF is distinct in low movement stability and USD/JPY requires a little more careful analysis than the other majors and often throws unexpected tricks, such as the intervention of the central bank.
Exotic pairs have high spread, they are illiquid and are distinct in unpredictable movements. Basically just very hard-nosed patriots trade these pairs. I am an average trader doesn’t need to use exotic pairs at all – it’s a waste of time and margin.