Often referred to as the ‘Cable’, the GBP/USD is the oldest tradable currency pair in the world. the GBP/USD can be highly affected by economic data from both the UK economy and the US economy, with swings that can encompass 100-150 pips around data publication. During periods of negativity or uncertainty within the US economy, forex traders focus on the publication of Core Consumer Price Index (CPI) inflation data.
The EUR/NZD, known as the ‘Euro-Kiwi’ for the reason that the New Zealand dollar is referred to as the ‘Kiwi’ after the flightless bird - the national symbol of New Zealand which appears on the NZ dollar coin. With each half of the EUR/NZD effectively behaving relatively autonomously, the EUR/NZD is often traded by more experienced investors who favour trend trading based on economic news and events in a more volatile market than the major pairs.
The GBP/NZD, known as the ‘Pound-Kiwi’, are both among the top ten most traded currencies in the world in terms of value and volume. The performance of the GBP/NZD is heavily impacted by the correlation between the two economies. This pair is known for its volatility and the erratic nature of its sizable market movements and means that it must be handled with extreme caution. The GBP/NZD is not frequently traded by self-employed investors. However, experienced traders willing to take a higher risk threshold can make substantial profits from the pair.
The AUD/NZD tends to be primarily influenced by the local economies of Australasia and is not heavily affected by risk-trends or global factors. The primary influence on the NZD is agricultural food and milk markets, whilst the AUD is influenced by commodity markets.