Which Are Best Currency Pairs To Trade in 2025

Choosing the best currency pairs to trade will help you avoid terrible market conditions like huge spreads and slow-moving currencies. I have been trading forex for over 6 years now with over 20 currency pairs that I have tried to trade throughout the years I have filtered the best ones.

In this article, we’ll explore the best currency pairs to trade, including major and minor pairs, that offer the best market conditions.

Currency pair shows the value of one currency compared to another. When you trade a currency pair, you’re betting on whether one currency will get stronger or weaker compared to the other.

If you believe the Euro will strengthen compared to the Dollar, you might buy EUR/USD. If you think it will weaken, you could sell EUR/USD.

A currency pair consists of two parts:

1. Base Currency: The first currency in the pair.
2. Quote Currency: The second currency in the pair.

For example:

• In the pair EUR/USD, the Euro (EUR) is the base currency, and the U.S. Dollar (USD) is the quote currency.

The top major currency pairs to trade are EURUSD, GBPUSD, USDJPY, USDCAD, AUDUSD, and USDCHF. Major pairs involve the most frequently traded currencies globally, leading to high liquidity. This means trades execute quickly with low price fluctuation.

Since they have high trading volume, the difference between buying and selling prices (the spread) is usually very small, reducing transaction costs

EUR/USD is the most traded currency pair in the world. It’s popular because it’s easy to predict and has plenty of trading opportunities every day.

Why is EUR/USD a great choice?

• High Liquidity: This pair is traded by banks, businesses, and traders all over the world.
• Low Transaction Costs: The spread (difference between buying and selling prices) is very small.
• Predictable Movements: Economic news, like interest rates or employment data, often causes predictable price changes.

Nicknamed “Cable,” GBP/USD is known for its sharp price movements. This makes it exciting but also a little risky.

Why should you trade GBP/USD?

• Volatility: The pair moves a lot, which creates opportunities for profit.
• Correlations: GBP/USD often follows similar trends to EUR/USD, so you can compare them when making trading decisions.

The USD/JPY pair is often called a “safe haven” because the Japanese Yen is considered a stable currency during uncertain times.

What makes USD/JPY special?

• Global Risk Sentiment: When global markets are unstable, the Yen often strengthens, creating clear trading opportunities.
• Consistent Trends: USD/JPY often follows steady, long-term trends.

USD/CAD is influenced by the price of oil because Canada is one of the world’s largest oil exporters.

Why trade USD/CAD?

• Oil Prices Matter: If oil prices rise or fall, USD/CAD usually reacts.
• Good Volatility: The pair provides plenty of opportunities without being too unpredictable.

The Australian Dollar is tied closely to the commodities market, especially gold and iron ore.

What makes AUD/USD attractive?

• Commodity Trends: Changes in global demand for raw materials influence this pair.
• Active Trading Hours: AUD/USD is busiest during the Asian trading session, making it ideal for traders in that timezone.

USD/CHF is another “safe haven” pair, with the Swiss Franc gaining value during times of global uncertainty.

Key reasons to trade USD/CHF:

• Stability: The pair is less volatile than others, making it suitable for beginners.
• Global Events: It reacts predictably to geopolitical news.

minor currency pairs do not include the US dollar and are generally less liquid than the major pairs. The top minor currency pairs to trade are GBPJPY, CADJPY, EURJPY, AUDJPY, and EURGBP.

It’s important to understand that classifying a pair as “minor” can sometimes be subjective and may vary between brokers or trading platforms.

This pair is known for its large price swings, which can lead to big profits (or losses).

Why trade GBP/JPY?

• High Volatility: Ideal for traders who enjoy fast-moving markets.
• Correlations: GBP/JPY often mirrors the trends of GBP/USD.

CAD/JPY combines Canada’s economic strength with Japan’s stability.

What makes CAD/JPY interesting?

• Oil Influence: Like USD/CAD, this pair is affected by oil prices.
• Consistent Patterns: It offers steady movements that are easier to trade.

EUR/JPY is a popular pair among swing traders who look for medium-term opportunities.

Why trade EUR/JPY?

• Predictable Trends: It moves in clear patterns.
• Good Liquidity: While not as liquid as EUR/USD, it’s still easy to trade.

This pair is perfect for traders who focus on global economic trends.

What makes AUD/JPY a great choice?

• Commodity Influence: Australia’s reliance on natural resources creates unique trading opportunities.
• Active Trading Hours: This pair is busiest during the Asian session.

EUR/GBP is less volatile than other pairs, making it suitable for cautious traders.

Why trade EUR/GBP?

• Low Volatility: Price movements are steady and manageable.
• Economic Insights: It reflects the relationship between the Eurozone and the UK.

Exotic pairs consist of a major currency paired with a currency from a smaller or emerging economy. They are characterized by lower liquidity, wider spreads, and higher volatility. The top exotic currency pairs to trade are USDZAR, USDMXN, and USDCNH.

USD/ZAR is influenced by South Africa’s economy and global commodity prices.

This pair offers plenty of movement, especially during U.S. trading hours.

As China’s economy grows, USD/CNH has become a key pair for traders looking to capitalize on global trends.

It’s important to understand the difference between CNH and CNY. CNY is the onshore Chinese Yuan, traded within mainland China and heavily regulated by the Chinese government. CNH is the offshore Yuan, traded in Hong Kong and other international markets with less strict controls

My favorite currency pairs are EURUSD, GBPUSD, GBPJPY, and CAJPY. The reason I choose these currency pairs to trade is because they move a lot and they respect my trading strategy most of the time.

EURusd and GBPUSD are correlating pairs meaning if there is a trading setup on EURUSD also on GBPUSD the will be a trading setup but one will have the best setup that checks all my requirements similar to GBPJPY and CADJPY.

I have given the list of the best currency pairs to trade, now your job to choose currency pairs to trade that will become your favorite you must look for the following:

• Currency With Low Spreads like EURUSD and GBPUSD
• Currency With High Trading Volume
• Currency That Moves During Your Trading Session
• Currency That Respects Your Trading Strategy

If a currency ticks all these requirements that will simply mean it’s your best currency pair to trade. My best currency pairs are GBPUSD, EURUSD, GBPJPY, and CADJPY they are the best because they tick all the requirements am looking for in a currency pair.

If you are new to trading here Is a beginner’s guide to learn forex trading.