5 Most Traded Pairs Of 2021 So Far

Did you know, the US dollar is involved in more than 50% of all forex trades. Yep. Beyond that, what else do you know about the most popular forex pairs in 2021? If the answer to that question is, “not a lot”, you’re in the right place. In this article, we’ll go over the 5 most traded forex pairs and their outlook for the rest of the year. Then give you a rundown of the top trading events this week. Let’s get to it!

The hottest pairs of 2021

Here’s our run-down of the top pairs of the year so far.

#1 EURUSD

01.01: 1.2180

24.07: 1.1770

% change YTD: -3.37%

EURUSD, 2021

Source: Yahoo Finance

“The Fiber” is by far the most popular pair in 2021, with EURUSD making up over a quarter (27.95%) of all forex trades alone. This might not be so surprising when you take into account the fact that the US dollar and the euro hail from the two largest and most respected economies on the planet.

This currency pair is associated with very low spreads, high liquidity and the ability to place large volumes of trade.

2021 has been slightly disappointing for longer-term EURUSD traders. Analysts generally agree that the price will continue to drop before any bounce-back.

Ultimately, the market is likely to see a certain amount of buying pressure as those numbers drift downwards. A solid support at 1.16 should stop the bears getting too carried away. But let’s see…

#2 USDJPY

01.01: 103.2260

24.07: 110.5100

% change YTD: +7.06%

USDJPY, 2021

Source: Yahoo Finance

Ah, “the Gopher”! USDJPY has made up 13.34% of all forex trades so far this year, and you might be able to guess why. It’s the stand-out performer on this list by far, with the pair rising over 7% from the start of the year.

USDJPY has traditionally had a close correlation with US Treasuries. When interest rates go up, Treasury bond prices drop, which lifts the US dollar, strengthening USDJPY prices.

Last week did not start well for the US dollar, but it pulled itself together and came back stronger toward the end of the week. Analysts are neutral to positive on the pair, currently. It needs to break above 110.45 to be sure of a more positive incline, if it hits that, it could extend past 111.00

#3 GBPUSD

01.01: 1.3673

24.07: 1.3754

% change YTD: -0.59%

GBPUSD, 2021

Source: Yahoo Finance

A pretty flat year in terms of growth for the GBPUSD, as the pair has seen negative growth so far in 2021, but that hasn’t stopped traders piling in. The pair has made up 11.27% of all forex trades this year!

GBPUSD is nicknamed “the Cable”, referring to the submarine telegraph cable placed between the US and Great Britain in the 1800s.

The market appears quite bullish on the pair right now. It’s targeting 1.3750 as the next resistance level, followed by 1.3952 and 1.4080. However, if the market breaks below 1.3550, we could start seeing some bears coming to ruin the bull’s party.

#4 AUDUSD

01.01: 0.7703

24.07: 0.7368

% change YTD: -4.35%

AUDUSD, 2021

Source: Yahoo Finance

The least imaginative nickname on the list, “the Aussie” comes in at number 4 so far this year, with AUDUSD making up 6.37% of all forex trades.

The pair’s popularity among traders comes from the fact that Australia is among the richest countries in the world in terms of natural resources, including metals, coal, diamonds, meat, and wool.

2021 hasn’t exactly been a massive growth year for the Aussie. This has been a year mired by Australia putting most of its major cities under lockdown. Macroeconomic data from June and July also indicates some tough times ahead for the economy.

It’s looking like the pair’s fortunes will continue to depend on demand for the US dollar, or lack thereof.

#5 USDCAD

01.01: 1.2564

24.07: 1.2556

% change YTD: -0.06%

USDCAD, 2021

Source: Yahoo Finance

Our favourite nicknamed pair, “the Loonie”, completes our list of the top 5 traded pairs in 2021. USDCAD has made up 5.22% of all forex trades this year.

USDCAD’s nickname it’s derived from Canada’s $1 coin, which has a picture of a common loon (a bird) on the back side. So, no, nothing to do with Bugs Bunny.

The pair had a fine start to the week last week, hitting 1.2805, but that bubble soon burst. If the 1.2485 support holds, we might see it return. On the downside, a drop toward 1.2485 could spark a deeper decline to a support around 1.2301.

Top trading events this week

We’re in for a busy week ... Let’s see what’s on the agenda.

Monday

● No major events are planned.

Tuesday

● USD — Durable Goods Orders MoM (JUN); CB Consumer Confidence (JUL)

Wednesday

● AUD — Inflation Rate YoY (Q2)

● CAD — Core Inflation Rate YoY (JUN); Inflation Rate YoY (JUN)

● USD — Fed Interest Rate Decision

Thursday

● EUR — German Unemployment Rate (JUL); German Preliminary Inflation Rate YoY (JUL)

● USD — GDP Growth Rate QoQ Adv (Q2)

Friday

● EUR — Core Inflation Rate YoY Flash (JUL); GDP Growth Rate YoY Flash (Q2)

● USD — PCE Price Index YoY (JUN); Michigan Consumer Sentiment Final (JUL)

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The Contentworks team

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