The best currency pair to start trading is a currency pair that has a small spread and sharp and strong signals. So EUR-USD is the best. Most brokers charge 2 pips when you buy EUR-USD and recently I have seen some brokers that charge even less than one pip.
GBP-USD is so similar to EUR-USD but it has a higher spread and greater volatility. You can try the GBP-USD only after few months that you have been working with EUR-USD but if you are happy and comfortable with EUR-USD, forget about GBP-USD.
USD-JPY and USD-CAD are completely different from EUR-USD and GBP-USD because they are dependent on two different countries, Japan and Canada with different economy and situation from Europe, GB and USA.
Canada is an oil supplier and the price of oil has a direct impact on the value of Canadian dollar. So the price of oil can work as a leading indicator for USD-CAD. When the price of oil goes up the USD-CAD goes down because the value of Canadian dollar goes up.
On the other hand, Japan is an oil consumer country and so when the price of oil goes up they have to pay more and so they have to increase the price of their product. So there will be less demand for their products and the value of JPY will go down. When the value of JPY goes down, the USD-JPY can go up but in this case, as the value of USD has been going down too, it will be a little harder to use the oil price to predict the direction of USD-JPY.
CAD-JPY is the currency pair which has a stronger relation with the oil price because Canada is an oil supplier and Japan is an oil consumer. So when the oil price goes up CAD-JPY goes down strongly and when visa versa. Of course countries can control the value of their currency through different ways and methods like increasing and decreasing their interest rate. It means a country like Japan doesn’t let its currency value goes down very much because of the oil price.
AUD-USD has a good relation with the gold price. When the gold price goes up the AUD-USD goes up too. So if you follow the gold price and also the economy of USA, you can predict the direction of AUD-USD.
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