Despite the strength of the US economy, the dollar/euro currency pair (EUR/USD) is the most traded currency pair in the world, accounting for almost 30% of the entire forex market. According to the 2020 Economic Statistics, the US and European Union, the table below present the number of currency pairs traded in the forex market, along with the ratio of each pair to the total volume traded.

The most traded currency pair in the forex market is EUR/USD (Euro/US Dollar), accounting for nearly 20-30% of all forex transactions. Its dominance stems from the economic strength of the Eurozone and the United States, high liquidity, and tight spreads, making it attractive for traders. The pair is heavily influenced by macroeconomic factors like interest rate decisions from the European Central Bank (ECB) and the Federal Reserve (Fed), GDP growth, and geopolitical stability. Due to its high trading volume, EUR/USD experiences lower volatility compared to exotic pairs, reducing slippage and execution risks. It serves as a benchmark for forex markets, with major movements often reflecting global economic shifts. Traders, including institutions and retail investors, favour EUR/USD for its predictability and around-the-clock liquidity, especially during overlapping sessions of the London and New York markets.