Forex Converter & Forex Quotes

For forex trading beginners, the best currency pairs are those that have sharp and robust signals but small spreads. Therefore, you will have to find the currency pairs where brokers usually charge only 2 pips or even one pip. One example is the EUR/USD currency pair.

Many experts agree that the best currency pair for a beginner is he EUR/USD currency pair because it has a smaller spread and it has high liquidity results. Moreover, there is also a lot of information available for this particular currency pair.

The GBP/USD currency pair is like the EUR/USD pair but it is more volatile and it usually has a bigger spread. Bigger spreads mean higher costs for the trader and a beginner might want to minimize costs as much as possible. Higher volatility also means that there is a higher possibility of suffering a loss. Traders who have started with the EUR/USD pair and gained experience for a few months may want to try the GBP/USD pair. However, if you are getting good results, you may want to stick with what you have.

The USD/CAD and USD/JPY currency pairs are very different from the previously discussed pairs. This is because Canada and Japan are very different from the U.S., Great Britain or Europe. Japan is an oil consumer thus the price of their products rises every time the oil price increases. This will reduce the demand for Japanese products and correspondingly, the value of the Japanese yen will drop. And when the Japanese yen weakens against the U.S. dollar, the USD/JPY currency pair will increase in value. However, if the value of the U.S. dollar is also on a downtrend, it will be difficult to forecast the direction in which the USD/JPY currency pair will go.

On the other hand, Canada is an oil producing country so that an increase in oil price will naturally mean a stronger Canadian dollar. Thus, it would be reasonable to assume that the value of the USD/CAD currency pair will decrease every time the oil price goes up. This is a relatively easy currency pair for forex trading beginners.

Another currency pair that will be relatively easy to predict is the CAD/JPY because these countries are opposites in terms of oil production and consumption. Therefore, the value of the CAD/JPY currency pair will substantially decrease every time there is a oil price increase and vice versa.

Another currency pair that could be best for beginning forex traders is the AUD/USD pair. This is because Australia is a gold producer and so as the price of gold rises, the value of the AUD/USD currency pair will also increase. Therefore, if a trader monitors the price of gold and the U.S. economy, there is a good chance that he will be able to forecast the direction of this particular currency pair.