The foreign exchange (forex) market operates 24 hours a day, five days a week, across every timezone โ€” from Sydney at 8am Monday to New York at 5pm Friday. It is the most liquid market on Earth.

**How currency pairs work**

Currencies are always quoted in pairs: EUR/USD, GBP/JPY, USD/TRY. The first currency is the **base currency**; the second is the **quote currency**. The price of EUR/USD = 1.0850 means 1 Euro costs 1.0850 US dollars.

When you "buy" EUR/USD, you are buying Euros and simultaneously selling dollars. When the price rises, the Euro has strengthened relative to the dollar.

**Major, minor and exotic pairs**

- **Majors**: The eight most traded currencies (USD, EUR, GBP, JPY, CHF, AUD, CAD, NZD) in all combinations. They have the tightest spreads and highest liquidity.
- **Minors**: Crosses between major currencies excluding the USD (EUR/GBP, GBP/JPY, AUD/CAD). Slightly wider spreads.
- **Exotics**: One major currency paired with an emerging market currency (USD/TRY, USD/BRL, USD/ZAR). Wider spreads, higher volatility, less liquidity.

**What moves currency pairs**

1. **Interest rate differentials**: The most powerful driver. When the Federal Reserve raises rates, the dollar typically strengthens because it offers better returns.
2. **Inflation data**: Higher inflation relative to a trading partner weakens a currency over time.
3. **Economic data**: GDP growth, employment reports, PMI surveys all affect currency valuations.
4. **Political risk**: Elections, geopolitical conflicts, trade policy changes can cause sharp moves in exotic pairs in particular.
5. **Risk sentiment**: In risk-off environments (market stress), safe-haven currencies (JPY, CHF, USD) tend to strengthen; high-beta currencies (AUD, NZD, emerging market) tend to weaken.

**Technical analysis in forex**

The same technical tools that work on stocks work in forex โ€” candlesticks, moving averages, RSI, MACD, support and resistance. Forex markets are particularly respected by technical analysts because they are extremely liquid and driven heavily by institutional algorithmic trading, which creates clean, repeatable patterns.

All major, minor and exotic pairs are available on investing.linigu.com with full daily candlestick charts and automated technical analysis signals.