Top Forex Currency Pairs August 2020: The forex market has been anxious since the year it has started. Basically, in light of one significant essential impact: the coronavirus flare-up. What began as a regional pandemic in China has spread to more than 213 countries. It has affected more than 20M people globally.
The lethal virus urged the governments to close their territories, cities, states, and thus, ending manufacturing plant work, transportation and the travel industry too.
The forex market reacted sternly to the episode’s effect, first on China and afterwards the world. The crisis has made exchanging openings on a scale last seen during the global financial crisis of 2008.
Today, we’ll see the top currency pairs which are performing well even in this crisis.
Best Forex Currency Pairs August
GBP/USD (Pound Sterling/US Dollar)
The traders expect the upcoming US elections to be a significant market mover. Thus, it will be best to invest in this pair. The US dollar remains the most exchanged money in the forex market. It is responsive to the risk-on/risk-off sentiments that creep into the market, with the coronavirus episode applying a risk assumption on the business sectors.
USD/JPY (USD/Japanese YEN)
Japanese yen presents a battle of which currency is, to a higher degree, a risk-hedging tool than the other. The USD/JPY is currently demonstrating more volatility than it did after the Federal Reserve cut rates in July 2019.
AUD/JPY (Australian Dollar/Japanese Yen)
Another major safe haven forex currency pair is AUD/JPY, which is the most undervalued pair. Note that the corona developments in the US have begun to affect the risk appetite, raising the concern and weighing down the Yen.
The Shinzo Abe led government has enhanced its evaluation of the national economy for the first time since starting of 2018 and Tokyo has also elevated its lockdown and other restrictions for all the companies.
The pair fell 64 points in March, plunging 76 points down from last year, before bouncing back again in June.
NOK/SEK (Norwegian Krone/Swedish Krone)
Here’s the currency that doesn’t involve the US dollar, i.e. NOK against SEK. The Norwegian forex is one of the most undervalued among all the G10. The country’s central bank predicts the national GDP by 3.5% this year, which is less than the previous prediction of 5.2% fall. The oil perspective of the country is so far positive, and with rising oil rates, the country’s currency is set to get stronger, keeping in mind the significance of the Norwegian oil sector.
Moreover, the Norwegian central bank, unlike other reserve banks like Sweden, is not engaged in easing quantitative measures like an interest rate cut. Instead, the nation is buying oil fund assets and krone, which makes it better and attractive than others.
The NOK/SEK earlier plunged to 0.89 in March from 1.07 in January 2020. However, the currency was able to bounce back, touching the 0.98 marks. Moreover, experts like TD Securities predict the future of the pair to again go at their previous mark.
CHF/USD (Swiss Franc/US DOLLAR)
The Swiss Franc is another notable pair, primarily for its safe-haven properties and typically pulls in the massive interest of all traders in the world.
CAD/USD (Canadian Dollar/ Us Dollar)
The Canadian dollar is a commodity currency. It is connected with crude oil. Canada also has the second-biggest oil storage in its shale sands. Bank of Canada’s decision to cut financing costs by 50 Bps on March 6 is considered a well-planned move for supporting the Canadian economy and plunging crude expenses by making the CAD less expensive and increasingly severe. The USD/CAD looks set to introduce a ton of activity in the months to come.
USD/EUR (US Dollar/ Euro)
At present, it’s the most mainstream pair in the forex currency market, so it is very liable to keep up its status in 2020. It has the most minimal spread among all the other forex assets since it’s related to fundamental technical analysis. However, even amateurs can exchange this pair because it is not excessively volatile.
People who would prefer not to face challenges, for them, experts continuously prescribe to choose a pair like the USD/EUR because it’s easy to anticipate its advancement. Online indexes list a lot of data about this currency pair, which can help beginners maintain a strategic distance from botches.
EUR/GBP (European Euro/British Pound)
This pair moves bizarrely. It gives some sharp ascents and falls, support and resistance levels and flat movement. You can once in a while observe different kinds of developments with this pair. The traders can open rebound and breakout orders with about a similar capability of usage. In 2020, this pair will probably drive by any bit of news on Brexit.
Forex Market August Prediction
The degree of COVID-19 worldwide spread would decide the financial effect on different nations’ commodity flexibility chains. They will be the principal drivers of currency value activity in the long stretch of August.
The bearing of the forex market will be chosen by how broadly the coronavirus episode impacts the worldwide economy. The reaction of national banks and strategy creators and the hazard conclusion in the market will likewise be the factor.
Healthcare organizations are fighting to discover a vaccine or an antibody. There is the incredible expectation that in the next quarter, the hardest-hit territories will receive COVID-19 vaccines. If there is an achievement, hazard avoidance may die down, and dangerous resources will begin to encounter a recuperation.
For forex currency pairs, for example, the British pound, the Brexit exchange talks present an additional weight (much in Q1 and Q2 2020). As the cut-off time for the discussions approaches, there might be expanded volatility on the GBP/USD and EUR/GBP pairs.
However, until then, safe refuge currencies are good-to-go options.
Choosing a Forex Broker
Before you choose a forex broker for yourself, make sure to check the following things:
Spreads & Charges: A genuine broker offers tight spreads and charges and should not charge any commission on trading assets. Moreover, the fees must be mentioned clearly, and there must not be any hidden charges. HFtrading broker is best in this regard. Check the broker’s full review here.
Safety & Security: Unless a broker is not safe, there would be no point in trading anything. A good method to check the authenticity of the broker is checking licenses and regulations. Some top tier financial bodies in the world are FCA, CySEC, and ASIC. ETFinance and Tickmill broker is perfect in this field. Here is a complete review of ET finance and Tickmill.
Customer Support: Every brokers’ customer support team should work well to solve all the queries of its users. A good support teams’ response time is less, and the executives are knowledgeable as well as logical, polite, & rational.
The price of forex currency pairs vary on several factors and significantly depend upon the trade relationship with other countries and the export-import scenarios. In the forex market, traders have an advantage of trading in high leveraged assets than stocks and other markets. However, people are just aware of high profitability and not the fundamentals.
The best method to clear your basics about forex and its related topics is by enhancing knowledge. A good way to increase your knowledge is by reading books.
Here is the list of top forex books, check them out.