For non-US timezone Forex traders, choosing the right currency pairs to trade can be a critical decision. While the Forex market is open 24 hours a day, not all currency pairs are equally active or volatile during non-US trading hours. In this article, we will explore the best currency pairs for non-US timezone traders.
Major Currency Pairs
Major currency pairs are the most widely traded currency pairs in the Forex market and include the US dollar (USD) as one of the currencies. The major currency pairs include EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, and USD/CAD. These currency pairs are highly liquid and have tight spreads, making them ideal for non-US timezone traders. Moreover, these currency pairs are more active during European and Asian trading sessions, which coincide with non-US trading hours.
Cross-Currency Pairs
Cross-currency pairs, also known as minor currency pairs, do not include the US dollar and are traded between two major currencies. These currency pairs include EUR/GBP, EUR/JPY, GBP/JPY, AUD/NZD, and EUR/CHF, among others. These currency pairs are less liquid than major currency pairs, but they can offer higher volatility and greater trading opportunities. For non-US timezone traders, cross-currency pairs can be advantageous because they tend to be more active during European and Asian trading sessions.
Exotic Currency Pairs
Exotic currency pairs include currencies from emerging economies and less liquid markets. These currency pairs include USD/HKD, USD/ZAR, USD/TRY, and USD/SGD, among others. Exotic currency pairs are less liquid than major and cross-currency pairs, and their spreads can be wider. However, they can offer higher volatility and greater profit potential. For non-US timezone traders, exotic currency pairs can be advantageous because they are more active during Asian trading sessions.
Commodity Currency Pairs
Commodity currency pairs include currencies from countries that are major exporters of commodities, such as oil, gold, and copper. These currency pairs include AUD/USD, USD/CAD, and NZD/USD. The value of commodity currency pairs is closely tied to the prices of commodities, which can make them highly volatile. For non-US timezone traders, commodity currency pairs can be advantageous because they tend to be more active during Asian and Australian trading sessions.
Safe Haven Currency Pairs
Safe haven currency pairs include currencies from countries that are considered safe-haven assets during times of economic and political uncertainty. These currency pairs include USD/CHF, USD/JPY, and EUR/CHF. Safe haven currency pairs can be less volatile than other currency pairs, but they can offer stability during times of market turbulence. For non-US timezone traders, safe haven currency pairs can be advantageous because they tend to be more active during European and Asian trading sessions.
Conclusion
The best currency pairs for non-US timezone traders depend on their trading goals, risk tolerance, and trading strategy. Major currency pairs are highly liquid and offer tight spreads, while cross-currency pairs can offer higher volatility and greater profit potential. Exotic currency pairs are less liquid but can offer higher profit potential, while commodity currency pairs are highly volatile and can offer trading opportunities during Asian and Australian trading sessions. Safe haven currency pairs can provide stability during times of market turbulence. Non-US timezone traders should carefully consider their options and choose the currency pairs that best suit their trading needs.