Top 6 Most Tradable Currency Pairs

The most commonly traded currency pair is the euro/U.S. dollar. The euro is the base currency when you look at the pairing, even though the dollar could be the quote currency. It shows how much for the quote currency is necessary to buy one unit for the base, or just how many U.S. dollars are essential to buy 1 euro.
This pairing has a tendency to have an adverse correlation because of the U.S. dollar/Swiss franc pairing, meaning as you moves up, one other moves within the opposite direction. It also has a positive correlation – meaning both currencies will move in the same direction – with the British pound/U.S. dollar. The euro, pound and franc have an optimistic correlation with one another.

The U.S. dollar/Japanese Yen could be the next most traded pair, and is called trading the gopher. It has a tendency to correlate positively with the U.S. dollar/Swiss Franc and U.S. dollar/Canadian dollar pairs due to the fact U.S. dollar is the base currency in each.
Trading the British pound/U.S. dollar pairing is named trading the cable. It usually has a poor correlation using the U.S. dollar/Swiss Franc pairing, but an optimistic correlation because of the euro/U.S. dollar.

The U.S. dollar/Canadian dollar currency pair correlates negatively with the Australian dollar/U.S. dollar, the British pound/U.S. dollar, and also the euro/U.S. dollar since the U.S. dollar is the base currency in its pairing using the Canadian dollar.

The U.S. dollar/Swiss franc usually has a bad correlation aided by the euro/U.S. dollar and British pound/U.S. dollar. Forex traders have long considered the franc to be a safe haven during times during the political unrest.

Therefore the Australian dollar/U.S. dollar pair tends to have an adverse correlation with any pairing that does not utilize the U.S. dollar as the quote currency.

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