A currency pair, or exchange rate, is a quotation of two different currencies (e.g., EURUSD). The first currency listed (e.g., EUR) is called the base currency, and the second (e.g., USD) is the quote currency.
■ There are 8 major currencies: United States Dollar (USD), Euro (EUR), Japanese Yen (JPY), British Pound (GBP), Swiss Franc (CHF), Canadian Dollar (CAD), Australian Dollar (AUD), and New Zealand Dollar (NZD).
■ There are also 7 major currency pairs, known as the ‘Majors,’ which pair the US Dollar against EUR, JPY, GBP, CHF, CAD, AUD, and NZD.
These are some of the most actively traded Forex currency pairs.
⚒️ Currency Trading Tools
There are many free Forex trading tools designed to enhance the performance of currency traders. Below are some useful online Forex tools.
■ FOREX MARKET SENTIMENT
The market sentiment tool indicates how many traders have taken a specific position in a currency pair. It highlights overall crowd behavior.
■ COMMITMENTS OF TRADERS REPORT
The Commitments of Traders (CFTC) is a weekly report that presents the net non-commercial (speculative) positioning in the US Forex futures market. This report can reveal changes in the positions of 'smart money'. It is released every Friday at 3:30 pm (EST) and reflects positions from the previous Tuesday.
