The Best Performing Forex Currencies In 2021


It is crucial to figure out which currencies are strong or which ones are weak to gain profits and to make the right investments. Moreover, the weak or vulnerable ones might make you go into a loss. Before we jump straight to the best performing Forex currencies, let us go a bit to the basics.



What Is Currency Trading?

Which Currencies are Worth Trading?

1.USD to EUR

2.USD to JPY

3.USD to CAD

4.GBP to USD

5.USD to CHF

Final Thoughts


What Is Currency Trading?

Basically, it is when you want to exchange or convert one currency to another. Stock trading is usually limited to a certain period but the currency trading market is open flexibly because of the difference in time zones among the different countries. Now let’s give you an in- depth idea about the best forex currencies and how you can get started with currency trading.


Which currencies are worth trading? There are several currency pairs which when exchanged at an appropriate time provides traders with sweet profits. Following is a list of the currency pairs majorly traded in the world.


#1. USD to EUR

This is the major currency pair that is traded. USD is the currency followed by the United States of America while Euro is a currency used by almost 19 members of the European Union. This currency pair is influenced by political movements, bank decisions or government policies.


For example, if the European Central Bank brings out a policy to strengthen the Euro, the currency trade USD to Euro will suffer a huge backlash. According to Wall Street, the pandemic has helped the USD because of the rise of revenue in pharmaceuticals and research organizations.


#2. USD to JPY

JPY is the official currency of Japan. It lost its value significantly after World War II and suffered an all time low after the oil crisis in 1973. But it resurfaced and stabilized slowly following the crisis.


This currency is seen as a reserve after the major currencies like USD, GBP, and Euro. The major cause is the stability in this currency. Compared to all other Asian countries, Yen is considered the most stable.


The strategy is known as “dirty float” and was started by the Japanese government. They brought out a policy called “stability intervention” that helps the government control all the inflow and outflow of Yen, thereby controlling the currency and exchange rates. This currency trading can always be your safe bet in 2021.


#3. USD to CAD

CAD is the currency followed by Canada. Their exchange rates are largely influenced by commodity prices as opposed to the USD which was affected by politics and bank policies. It is no surprise that USD and CAD are closely related just like their borders.


Canada largely depends on oil which, in turn, influences CAD. For example, when the oil prices slumped in 2016, CAD suffered a great loss too as the exchange rate decreased from 1.46 to 1USD. Monitoring and assessing the oil prices would be the best thing to do before you trade in this currency pair.


#4. GBP to USD

GBP is the currency of the United Kingdom, Scotland and Wales. You probably know that the United Kingdom was a part of the European Union but maintained their currency as GBP. This currency is also considered as one of the strongest and of the highest value. After USD and Euro, the third most traded currency is GBP.


During the Great Recession of 2007, GBP reached a shocking high of £2.10 for $1. But in the following countries, it fluctuates wildly to £1.40 for $1. Therefore, people exchanged USD to GBP in 2007 but the reverse happened in 2008. Afterwards, it stabilized £1.60 for $1.


The next major fluctuation came along when the United Kingdom exited the European Union. Overnight, GBP lost about 10% over 1 night and more than 20% in the following months. Because of the losses, investors decided not to trade using GBP for any exchanges during negotiations.


#5. USD to CHF

CHF, also known as Swiss Franc, is the official currency of Switzerland. Although it is a part of the European Union, they never adopted the Euro. Whenever there is turbulence in the market, investors trade in CHF to protect their assets. It is known as the safe haven of currencies.


For example, when the world suffered the Great Recession of 2007, Swiss Franc saw a rise as the other currencies lost their value. But usually when the market is doing well, nobody appreciates CHF as much. Similar to JPY, this currency is also considered stable. You would decide to trade USD to CHF whenever the market is fluctuating or during volatile periods.


Final Thoughts

There you go, the currency pairs mentioned above are the best to be traded in 2021. Investors and traders would focus on the factors that affect the movement of the economy like politics for USD, oil prices for CAD and market volatility for CHF.


If you are thinking about currency trading, you need to follow the live assessments and analytics and know the main factors affecting the currency. However, in 2021, according to major investors, USD remains the strongest currency surviving through the pandemic.

You can get your Real-Time and Historical Forex Data with Finage free Fx Data API key.

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