Top 10 most traded currency pairs
With hundreds of currency combinations to choose from, forex is the largest and most volatile market globally. Learn more about the ten most traded forex pairs in the world.
What are the most traded forex pairs in the world?
We’ve identified ten forex pairs that are widely recognised as the most traded globally. These pairs have consistently maintained their popularity over time, reflecting their importance in the global currency markets.
The world's ten most traded currency pairs are:
Below, we examine each of these currency pairs in detail.
GBP/USD
GBP/USD, or ‘the cable’, pairs the Great Britain pound (GBP) with the US dollar (USD). The term pays homage to the historical method of communication used to transmit currency prices between the UK and the US in the 19th century via the first-ever transatlantic cables.
The GBP/USD remained at the forefront of forex trading in 2024, as the United Kingdom (UK) navigated the economic challenges and uncertainties of a post-Brexit, post-pandemic landscape.
The pair’s trading volume was also subjected to the differing (or ‘diverging’ as it's sometimes termed) monetary policies of the Bank of England and the US Federal Reserve.1
EUR/USD
EUR/USD pairs the currencies of the Eurozone (Euro) and the United States (USD), two of the world’s largest economies. The Euro, introduced in 1999, is the world’s second most widely held currency, while the USD is the world’s most widely held currency.2
The pair has stayed hot on the back of interest rate changes and economic recovery indicators. This pair has consistently registered robust trading volumes, accounting for as much as 25% of the total forex market, according to BIS’ most recent Triennial Central Bank Survey.
The EUR/USD is often cited for its deep liquidity, tight spreads, lower fluctuations and its influence on other markets. Due to these and other factors, the EUR/USD is often among the world’s most traded majors.
USD/JPY
This brings us to the USD/JPY (US dollar/ Japanese yen) pairing, also often considered to be a safe haven during times of market uncertainty. However, the pair experienced greater price volatility in 2024.
Economists said this was in large part due to the Japanese economy’s slow-ish recovery, which resulted in the Bank of Japan taking a dovish monetary policy stance against the Federal Reserve's more hawkish approach.3
Sometimes referred to as ‘the ninja’, the yen has historically appreciated when global markets were under stress, which made this pair a go-to for risk-averse traders in the past. Additionally, the Bank of Japan has used various unconventional monetary policies (ie negative interest rates and yield curve control) over the years that have impacted the yen exchange rate.
AUD/USD
AUD/USD (Australian dollar/ US dollar), sometimes referred to as ‘the aussie’ or ‘the commodity currency’, recorded strong trading activity as the Australian economy bounced back in 2024.
The AUD/USD pair is particularly sensitive to changes in commodity prices because Australia is a major exporter of commodities such as iron ore and coal. When China — a major importer of Australian commodities — previously showed signs of economic growth, the AUD had a habit of rising against the USD (and other majors).4
Traders with a penchant for capitalising on shifts in global commodities tended to view the AUD/USD as one of the best forex pairs to trade. This was particularly evident during the Russia-Ukraine war, which caused energy and agricultural product prices to fluctuate.
EUR/GBP
EUR/GBP (Euro/ Great Britain pound) — not to be confused with the reverse pairing of GBP/EUR (Great Britain pound/ euro) — decreased in volatility in 2024, as the EU and the UK continued to navigate post-Brexit relations.5
In the 12 months leading up to November 2024, the EUR/GBP experienced an average volatility per month rate of 1.72%. This is compared to a three-year and five-year average volatility per month rate of 2.47% and 2.77% respectively.6
The cross currency pair is considerably less volatile than other pairs such as the GBP/USD which had an average volatility per month of 5.25% between December 2023 and November 2024.
USD/CAD
USD/CAD (US dollar/ Canadian dollar), or ‘the loonie’, remained a popular commodity-centric choice for forex traders in 2024.
Canada is the world’s fourth-largest producer of crude oil, according to a US Energy Information Administration report.7 As such, fluctuations in oil prices (as was the case in recent years) have had a significant impact on Canada's economic performance, trade balance and overall strength of the Canadian dollar.
Past data showed that when oil prices rose, Canada's export revenues and demand for the CAD increased, which led to an appreciation of the CAD against the USD.8 Conversely, falling oil prices have put downward pressure on Canada’s export revenues and the CAD.
Besides its exposure to commodities, the USD/CAD is also among traders’ top forex pairs to trade because of the close economic relationship between the US and Canada, as well as the currency pair’s high liquidity and price volatility.
USD/CHF
USD/CHF (US dollar/ Swiss franc) maintained its status as a safe haven currency pair in 2024, as investors sought refuge from global economic and political upheavals.
The Swiss franc’s famous stable nature is predicated on both the country’s political neutrality and the Swiss National Bank's (SNB) commitment to maintaining the franc's stability, a particularly attractive quality in light of ongoing geopolitical conflicts in Europe, the Middle East and other parts of the world.9
Another possible reason for the USD/CHF’s continued appeal is the US Federal Reserve and SNB’s differing interest rates, with the former lowering interest rates to 4.75% and the latter to 1.00%. This difference is preferred by traders who employ carry trade strategies. Carry trade strategies involve the borrowing of currencies with lower interest rates (like the CHF) and investing in those with higher rates (like the USD).
EUR/JPY
EUR/JPY (Euro/ Japanese yen) is another cross currency pair typically traded by clients who prefer employing carry trade strategies and leveraging interest rate differentials.
The European Central Bank (ECB) lowered interest rates to 3.25% in October 2024, while the Bank of Japan kept interest rates at 0.25%. This interest rate difference, while not as significant as that of the aforementioned USD/CHF, also coincided with the recovery of the European10 and Japanese11 economies and subsequently, the interplay between both currencies.
NZD/USD
NZD/USD (New Zealand dollar/ US dollar), like the AUD/USD and USD/CAD, also offers commodities exposure to clients.
Sometimes referred to as ‘the kiwi’, the NZD/USD is considered a commodity-linked currency, as the country's economy is heavily dependent on the export of commodities like dairy products, meat and agricultural goods.12 This makes the pair sensitive to fluctuations in global commodity prices.
The NZD/USD saw significant trading activity in 2024 as the New Zealand economy showed signs of resilience in the face of global uncertainty. Its performance was also impacted by the ongoing trade relationships between New Zealand and its key partners, particularly China and other Asia-Pacific nations.
GBP/JPY
GBP/JPY (Great Britain pound/ Japanese yen) is among clients’ favourite forex minor currency pairs to trade.
Like the aforementioned EUR/GBP, the pound-yen is also on the volatile end of the FX spectrum, with an average volatility per month rate of 5.02% between December 2023 and November 2024.13
This volatility coincided with the interest rate differential between the Bank of England’s interest rate of 4.75% and the BOJ’s of 0.25%.
Forex pairs explained
Forex trading operates on a fundamental principle of exchange – when you buy or sell one currency, you’re simultaneously buying or selling another. This is why currencies are traded in pairs.
Every currency pair consists of a base currency and a quote currency. The base currency appears first, representing one unit of the asset being purchased or sold. The quote currency thus denotes the amount required to acquire one unit of the base currency. This price is what is displayed for the currency pair.
For instance, in the EUR/USD pairing, the euro is the base currency, while the US dollar serves as the quote. If the quoted price reads 1.2000, it signifies that one euro can be exchanged for 1.20 US dollars. This rate reflects the relative value between the two currencies at that moment in the foreign exchange market.
Different types of forex pairs
The forex market is generally divided into three groups of currency pairs:
- Major pairs – these are the most actively traded currency pairs, typically involving the US dollar paired with currencies like the euro, yen, British pound and Swiss franc. Major forex pairs tend to have the highest liquidity and tightest spreads in the forex market
- Commodity pairs – these pairs have values closely tied to the price movements of commodities like oil, metals or agricultural goods. Notable examples include AUD/USD and USD/CAD. Commodity-linked forex pairs are influenced by the underlying commodity markets
- Cross pairs – these are currency pairs that don’t include the US dollar. Among the most well-known crosses are EUR/GBP and EUR/JPY. Cross pairs provide diversification opportunities outside the US dollar
How to start trading forex
- Select and research a forex pair of your choice
- Analyse the pair (technically and fundamentally)
- Choose a forex trading strategy, practise and assess risk
- Create an account with us and fund it
- Open, monitor and close a position on a forex pair
1. Select and research a forex pair of your choice
Select a forex pair you’re familiar with or understand and analyse its past movements. Our platform offers over 80 currency pairs for CFD trading, enabling leveraged trades where profits and losses are based on the full position size. Always ensure that you manage your risk carefully
2. Analyse the pair (technically and fundamentally)
Use technical analysis to study historical price patterns or fundamental analysis to assess economic, political and financial factors affecting the currency pair. Understand how the base and quote currencies interact to identify optimal entry points
3. Choose a trading strategy, practise and assess risk
Develop a strategy that suits your goals, starting with a trading plan and backtesting/ practising it on a demo account. Strategies like day trading capitalise on short-term market volatility. Ensure that you’re comfortable with the associated risks and manage your exposure wisely
4. Create an account and fund it
Open an account by completing an application. Once verified, you can start funding the account to begin trading or practice on a demo account with virtual funds. There’s no minimum deposit, but it’s advisable to trade within your financial means
5. Open, monitor and close a forex position
Execute a forex trade based on analysis and strategy. Monitor the position closely using tools like price alerts and stop-loss orders to manage potential risks. Adjust your position as needed and close it when appropriate
Most traded FX pairs summed up
- The GBP/USD, EUR/USD and USD/JPY remain the top three most traded currency pairs in the forex market, however other highly liquid pairs to consider are AUD/USD, EUR/GBP and USD/CAD
- There are three broad categories of forex pairs, namely major pairs, commodity pairs and cross pairs
- When choosing a currency, consider interest rate differentials, political and economic events and commodity prices for commodity-linked pairs (ie AUD/USD, NZD/USD)
- Thoroughly analyse both the technical and fundamental aspects of the pair to determine if it’s a suitable and timely trading opportunity for you
- Volatility in forex can offer opportunities but also heightens the risk. Ensure you can handle the risk and use sound risk management strategies
Sources:
1 National Institute of Economic and Social Research, 2024
2 Council on Foreign Relations, 2023
4 Australian Government (Department of Foreign Affairs and Trade)
5 National Institute of Economic and Social Research, 2023
7 U.S. Energy Information Administration, ‘Short-Term Energy Outlook’, 2023
10 J.P. Morgan Asset Management, 2024
11 Reuters, ‘Japan continues to see moderate economic recovery, cuts factory output view’
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