Introduction
Forex trading is an intricate and dynamic field where currency pairs play a central role in determining market movements.
As of 2025, some currency pairs dominate the Forex market due to their liquidity, volatility, and trading volume. Whether you’re a novice trader or a seasoned professional, understanding these currency pairs is crucial to developing successful trading strategies.
In this article, we’ll delve into the top 10 most traded currency pairs in 2025, providing key insights into what drives their price movements.
What Are the Most Traded Currency Pairs?
To start, here’s a quick snapshot of the top 10 currency pairs by trading volume in 2025:
Rank | Currency Pair | Trading Volume (%) | Key Characteristics |
1 | EUR/USD (Euro/US Dollar) | 27.95% | The most liquid pair, heavily influenced by the ECB and Fed policies. |
2 | USD/JPY (US Dollar/Japanese Yen) | 13.34% | Strong correlation with US Treasury yields and global risk sentiment. |
3 | GBP/USD (British Pound/US Dollar) | 11.27% | Known as “Cable,” influenced by UK economic conditions and inflation. |
4 | AUD/USD (Australian Dollar/US Dollar) | 6.37% | Commodity-linked, influenced by global growth and risk appetite. |
5 | USD/CAD (US Dollar/Canadian Dollar) | 5.22% | Correlated with oil prices, impacted by economic reports from both nations. |
6 | USD/CHF (US Dollar/Swiss Franc) | 4.63% | A safe-haven pair during times of market instability. |
7 | NZD/USD (New Zealand Dollar/US Dollar) | 4.08% | Driven by agricultural commodities and New Zealand’s economic performance. |
8 | EUR/JPY (Euro/Japanese Yen) | 3.93% | Combines Euro liquidity with Yen’s safe-haven status, sensitive to geopolitical events. |
9 | GBP/JPY (British Pound/Japanese Yen) | 3.57% | Known for high volatility, driven by developments in both the UK and Japan. |
10 | EUR/GBP (Euro/British Pound) | 2.78% | Reflects trade relations and monetary policies between the Eurozone and the UK. |
1. EUR/USD: The King of Currency Pairs
Why It Matters: The EUR/USD pair remains the most traded in 2025, accounting for 27.95% of all Forex transactions. Its sheer volume stems from the economic importance of both the Eurozone and the U.S. Additionally, this pair offers high liquidity and tight spreads, making it a favorite for traders worldwide.
What Moves EUR/USD:
- ECB and Fed Policies: The European Central Bank (ECB) and the U.S. Federal Reserve have a substantial influence on the EUR/USD rate. Interest rate decisions and monetary policies directly impact the value of the Euro and U.S. Dollar.
- Economic Indicators: GDP, inflation, and unemployment data from both the Eurozone and the U.S. can cause significant shifts in the pair’s price.
- Geopolitical Events: Global crises, trade policies, and other international developments can influence the stability of the Euro and the Dollar.
2. USD/JPY: A Risk-Sensitive Pair
Why It Matters: The USD/JPY pair is a staple in Forex markets, representing 13.34% of trades. It’s highly influenced by U.S. Treasury yields and risk sentiment, making it a go-to for traders seeking volatility. The Bank of Japan’s (BoJ) monetary policies also play a significant role in shaping this pair’s movements.
What Moves USD/JPY:
- Interest Rate Differentials: When the Fed raises rates, USD/JPY typically strengthens. Conversely, the BoJ’s ultra-loose monetary policy keeps the Yen weak.
- Global Risk Sentiment: The Yen is often seen as a safe-haven currency. During times of uncertainty, the USD/JPY may rise as investors flock to the Dollar.
- Economic Data: Key data points such as U.S. employment figures or Japanese export reports can also shift this pair’s price.
3. GBP/USD: The Volatile "Cable"
Why It Matters: Known as “Cable,” GBP/USD makes up 11.27% of global trading volume. This pair is particularly sensitive to political and economic events in the UK, including the aftermath of Brexit. It offers high volatility, which can be both an opportunity and a risk for traders.
What Moves GBP/USD:
- Political Developments: Ongoing Brexit-related news continues to affect GBP, along with government fiscal policies.
- Monetary Policy: The Bank of England (BoE) and U.S. Federal Reserve policies influence this pair significantly.
- Economic Reports: Inflation and unemployment figures from the U.K. have a direct impact on GBP/USD.
4. AUD/USD: The Commodity-Linked Pair
Why It Matters: The AUD/USD pair is often favored by traders seeking exposure to commodities. With a share of 6.37% of Forex trades, this pair is particularly responsive to global economic growth and changes in commodity prices.
What Moves AUD/USD:
- Commodity Prices: Australia is a major exporter of raw materials, and as a result, changes in commodity prices (especially iron ore and gold) directly affect the Australian Dollar.
- Global Risk Appetite: During times of economic growth, the AUD often strengthens, while in times of crisis, it tends to weaken.
- RBA Decisions: The Reserve Bank of Australia (RBA) sets the tone for interest rates, affecting the currency’s value.
5. USD/CAD: The Oil-Linked Pair
Why It Matters: USD/CAD, comprising 5.22% of trades, is tightly linked to oil prices due to Canada’s role as a major oil exporter. The pair sees significant movement depending on oil price fluctuations, making it a key choice for traders during periods of heightened oil market activity.
What Moves USD/CAD:
- Oil Prices: Since Canada is one of the largest oil producers globally, USD/CAD often mirrors changes in oil prices.
- Economic Data: Reports from both the U.S. and Canada can impact the value of the pair. For instance, U.S. Non-Farm Payrolls and Canadian GDP data are key drivers.
- Monetary Policy: The Federal Reserve and Bank of Canada (BoC) interest rate decisions impact the USD/CAD pair.
6. USD/CHF: The Safe Haven Choice
Why It Matters: The USD/CHF pair, with 4.63% of trading volume, is widely viewed as a safe haven currency during times of market uncertainty. When global markets face crises or political instability, the Swiss Franc tends to strengthen.
What Moves USD/CHF:
- Risk Sentiment: The Swiss Franc is a traditional safe-haven asset. During times of market stress, traders often flock to CHF.
- Swiss Economic Health: Though less volatile than other pairs, economic reports from Switzerland still play a role in USD/CHF movement.
- U.S. Economic Data: Given the correlation between the U.S. Dollar and CHF, U.S. economic data is a key influencer of the pair.
7. NZD/USD: A Volatile Commodity Currency
Why It Matters: NZD/USD, comprising 4.08% of trading volume, is heavily influenced by agricultural commodities such as dairy products and wool. New Zealand’s economic performance, along with global demand for these goods, can drive significant movements in this pair.
What Moves NZD/USD:
- Commodity Prices: As a major exporter of agricultural products, changes in global commodity prices significantly impact the NZD.
- New Zealand Economic Data: Reports on GDP and trade balance can move the currency.
- Global Risk Sentiment: Similar to AUD, the NZD tends to rise in a risk-on environment and fall during risk-off periods.
8. EUR/JPY: Euro Meets Yen Liquidity
Why It Matters: The EUR/JPY pair, with 3.93% of trades, combines the liquidity of the Euro with the safe-haven status of the Yen. This pair is particularly attractive for traders looking for volatility, as it’s highly sensitive to economic events and geopolitical developments.
What Moves EUR/JPY:
- Economic Data: Economic reports from both the Eurozone and Japan significantly impact this pair.
- Geopolitical Events: Tensions or crises in Europe or Asia can trigger sharp price movements in EUR/JPY.
- Interest Rates: The ECB and BoJ’s monetary policies shape the exchange rate.
9. GBP/JPY: The Volatile Pound/Yen Pair
Why It Matters: The GBP/JPY pair, which captures 3.57% of global trading volume, is well known for its volatility. This pair offers significant profit opportunities but also comes with a higher risk due to its price fluctuations. Economic developments in both the UK and Japan can cause dramatic swings.
What Moves GBP/JPY:
- Brexit Aftershocks: The ongoing impact of Brexit negotiations continues to shape GBP’s value.
- Risk Sentiment: The Yen’s safe-haven status means that GBP/JPY moves in line with broader risk sentiment.
- Monetary Policies: The Bank of England and Bank of Japan’s rate decisions significantly influence this pair.
10. EUR/GBP: Euro vs. Pound
Why It Matters: EUR/GBP, accounting for 2.78% of trading volume, reflects the trading relationship between two major European economies: the Eurozone and the UK. This pair’s movements are largely influenced by trade relations, economic policies, and the ongoing ramifications of Brexit.
What Moves EUR/GBP:
- Brexit Developments: Any news related to the UK’s trade agreements or political stability continues to affect the EUR/GBP pair.
- Economic Reports: Data such as inflation or GDP growth in either the Eurozone or the UK will impact this pair.
- ECB and BoE Policies: The policies set by the European Central Bank and the Bank of England can drive significant price movements.
Conclusion
The Forex market in 2025 offers a wide range of opportunities for traders.
By understanding the top 10 most traded currency pairs, you can make more informed trading decisions.
Whether you’re looking for stable, liquid pairs like EUR/USD or high volatility options like GBP/JPY, knowing the factors that influence these pairs will guide your strategy and increase your chances of success.
