Popular Currency Crosses in Forex

Currency pairs in forex trading exclusive of the USD are commonly termed as cross currency pairs.
Pairs which include the Euro are referred to s the Euro crosses like EUR/JPY and EUR/CHF. Other pairs that do not deal with the euro can simply be called cross rates as the CAD/JPY, GBP? CHF etc.Currency crosses are the next most important pairs in forex after Major currency pairs.

The Yen is fast becoming a favorite due to lower interest rates on it and it trades excellent with NZD. NZD/JPY can let traders be eligible for good day interest fees if the pair is held long.

Trading the EUR/JPY
It is one of the highest traded cross currencies influenced chiefly by the movements of the EUR/USD and USD/JPY. Differential interest rates and growth rates in Japan and the Euro zone are crucial drivers. Oil price again is important as Japan nearly all its oil requirements.


Trading the EUR/GBP
UK’s second largest trading ally is the Euro zone. If you want to trade the British pound, this is one of the pairs you can trade as GBP/USD is affected more by the market outlook of the USD.

Vital points to be considered are the interest rates differences between the Bank of England and that of Europe (ECB). Other related economic data of the two zones with their growth differences is inevitable.


This pair is great for rather novice traders as it’s relatively low on volatility. And can be traded by using and analyzing the technical analysis with the fundamental.


Trading the EUR/CHF
Euro is a major trading associate of the Swiss zone. The pair is attractive currency cross for carry traders as the CHF has rather low interest rates while the largely tech and fundamental perspective supports the pair.
The interest and growth rate differences of the ECB and national Swiss bank and the fundamentals of the concerned zone are imperative.

The pair is characterized by going long on a high yielding (euro) currency against a low yield (CHF). Traders can earn day interest as the rollover fees if hold the pair long.


Trading the NZD/JPY

This pair is always excellent for carry trades as the pair has one of the highest interest rates differences. It also becomes appealing as the currency cross to long on carry trade with the technical and fundamental outlook mostly supporting the rise of NZD/JPY.
Important elements are the interest rate differences between the Bank of Japan and the reserve Bank of New Zealand. As also the fundamentals of both the zones.

The pair can be traded by using the technical and fundamental news reports from the respective zones. Traders can earn rollover fees when holding this pair long.
The pair attractive mostly due to the big differential interest rates between the NZD (7%) and JPY (0.25%).


Trading the GBP/JPY
The pair sees most of action. If its volatility that you are looking for look no further than this pair-it can move 300 pips in a single day.

The interest rate difference between the two concerned banks-that is the Bank of England and that of Japan is important. As also the differential growth rates between the zones. Oil price is very crucial as Japan imports 99% of it oil requirements.
GBP/JPY come across as an extremely volatile cross currency pair and hence is no pair to cut teeth.