The forex market is the world’s largest financial market, with daily turnover above $7.5 trillion, according to the Bank for International Settlements. Over 70% of this volume comes from a small group of major currency pairs, making them the most traded instruments in global forex trading.
Understanding which pairs are the most traded is crucial for traders. It directly impacts liquidity, spreads (trading costs), and risk management. This guide provides a definitive overview of the most traded pairs in 2025, explaining why they dominate, how they correlate with global macro-events, and how to align them with your trading strategy.
Top 7 Most Traded Currency Pairs by Volume
| Pair | Nickname | % of Daily Volume (BIS 2022) |
| EUR/USD | Fiber | 22.7% |
| USD/JPY | Gopher | 13.5% |
| GBP/USD | Cable | 9.5% |
| AUD/USD | Aussie | 5.1% |
| USD/CAD | Loonie | 4.4% |
| USD/CNY | – | 4.1% |
| USD/CHF | Swissy | 3.6% |
What are the Most Widely Traded Currency Pairs?
The seven major currency pairs are the foundation of the Forex market. Their behavior is a direct reflection of global economic health and policy.
EUR/USD (Euro/US Dollar)
- Definition: The most traded and liquid pair, representing the two largest economies.
- Primary Drivers: Driven by the monetary policy divergence between the European Central Bank (ECB) and the US Federal Reserve (Fed).
- Historical Context: While dominant, its market share has slightly declined from a peak above 28% in 2010 as the Chinese Yuan has risen in prominence.
- Implications for Traders: Institutions often use EUR/USD as a primary hedge against US Dollar exposure.
- Scenario: If the Fed hikes interest rates faster than the ECB, the USD typically strengthens, putting downward pressure on EUR/USD.
USD/JPY (US Dollar/Japanese Yen)
- Definition: The second most traded pair, known for its safe-haven status.
- Key Correlation: It has a strong negative correlation with US 10-year Treasury bond yields. When yields rise (bond prices fall), USD/JPY tends to rise as capital flows into higher-yielding US assets.
- Historical Context: The Bank of Japan’s historically ultra-low interest rate policy has made the JPY a popular funding currency for carry trades.
- Implications for Traders: It is highly sensitive to global risk sentiment. In a “risk-off” environment, traders often buy the JPY, causing the pair’s value to fall.
GBP/USD (British Pound/US Dollar)
- Definition: Known as “Cable,” this pair is famous for its higher volatility.
- Primary Drivers: Highly sensitive to UK economic data (inflation, GDP) and monetary policy from the Bank of England (BoE).
- Historical Context: The 2016 Brexit referendum caused a historic flash crash in GBP/USD, permanently elevating its perceived geopolitical risk.
- Implications for Traders: Its wide daily range offers more significant profit opportunities for day traders and swing traders but also carries higher risk.
AUD/USD (Australian Dollar/US Dollar)
- Definition: A “commodity currency” whose value is strongly influenced by global growth cycles.
- Key Correlation: It is positively correlated with the price of iron ore and economic data from China, Australia’s largest trading partner.
- Implications for Traders: Used to trade shifts in the global commodity cycle and sentiment towards the Chinese economy.
- Scenario: If China’s PMI data weakens, demand for Australian commodities is expected to fall, typically putting downward pressure on AUD/USD.
USD/CAD (US Dollar/Canadian Dollar)
- Definition: Another major commodity currency, known as the “Loonie.”
- Key Correlation: It has a strong negative correlation with the price of WTI crude oil. A rise in oil prices typically strengthens the CAD, causing USD/CAD to fall.
- Implications for Traders: Popular for traders who also analyze energy markets and want to hedge or speculate on oil price movements.
Minor and Exotic Currency Pairs
Beyond the majors, other categories offer different risk-reward profiles.
- Minor Pairs (Crosses): These are pairs that do not include the US Dollar (e.g., EUR/GBP, EUR/JPY, GBP/JPY). They often have wider spreads and higher volatility. GBP/JPY is famously one of the most volatile of all currency pairs.
- Exotic Pairs: These consist of a major currency paired with one from an emerging economy (e.g., USD/TRY, USD/ZAR). They are characterized by low liquidity, wide spreads, and high sensitivity to political risk.
The Evolution of Global Forex Dominance: 2001-2025
The composition of the most traded pairs has evolved, reflecting shifts in the global economy. The most notable changes have been the consistent dominance of the USD and the rise of the Chinese Yuan.
| Currency | Share of Daily Trades (2001, BIS) | Share of Daily Trades (2022, BIS) | Long-Term Trend |
| US Dollar (USD) | 89.9% | 88.3% | Stable Dominance |
| Euro (EUR) | 37.6% | 32.3% | Mature, slight decline |
| Chinese Yuan (CNY) | 0.0% | 7.0% | Rapid Ascension |
Liquidity vs. Volatility: A Trader’s Matrix
Choosing a pair requires balancing liquidity (low cost) and volatility (profit potential).
| Pair | Category | Average Daily Range (Pips) | Volatility |
| EUR/USD | Stable Major | 50 – 80 | Low |
| USD/CHF | Stable Major | 40 – 70 | Low |
| GBP/USD | Volatile Major | 90 – 130 | High |
| GBP/JPY | Volatile Minor | 120 – 180 | Very High |
How Trading Sessions Impact the Most Traded Pairs
Forex is a 24-hour market, but liquidity and volatility for specific pairs are highest when their home markets are open.
- Asian (Tokyo) Session: Dominated by USD/JPY and commodity crosses like AUD/JPY. Generally lower volatility than other sessions.
- London Session: The session with the highest volume. EUR/USD, GBP/USD, and EUR/GBP are most active as major European economic data is released.
- New York Session: High volume, especially during the London-New York overlap (8 AM to 12 PM EST). This is the period of peak liquidity for all USD majors.
The Role of AI and Algorithmic Trading
The dominance of major pairs is amplified by AI and algorithmic trading. High-frequency trading (HFT) systems account for a huge portion of daily volume and thrive in highly liquid markets with low transaction costs. These systems prefer EUR/USD and USD/JPY because their deep order books allow for the execution of large trades with minimal slippage, reinforcing their status as the most traded pairs.
Bottom Line
The forex market offers thousands of trading combinations, but most activity centers on EUR/USD, USD/JPY, and GBP/USD. These pairs dominate due to stable economies, deep liquidity, and macroeconomic drivers. Traders should match pair selection with strategy, risk tolerance, and knowledge of global correlations to make informed decisions.
FAQs
The most traded forex pairs are the majors, which all include the US Dollar. As of the BIS survey, the top pairs are EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, USD/CHF, and USD/CNY, accounting for over 70% of global trading volume.
These pairs dominate due to deep liquidity, tight spreads, and global economic influence. EUR/USD reflects Eurozone–US monetary policy, USD/JPY reacts to bond yields and risk sentiment, and GBP/USD is known for volatility tied to UK economic data and Bank of England policy.
Minor pairs are crosses that do not include the US Dollar, such as EUR/GBP or GBP/JPY. Exotic pairs combine a major currency with one from an emerging economy, like USD/TRY or USD/ZAR. Minors have wider spreads, while exotics carry higher risk and lower liquidity.
EUR/USD and USD/JPY are the best pairs for beginners because they have the highest liquidity, lowest spreads, and predictable reactions to economic data. This reduces trading costs and volatility risk, making them more manageable for new traders compared to exotic or highly volatile pairs.
GBP/JPY is considered the most volatile major cross, often moving 120–180 pips daily. Among exotics, pairs like USD/TRY or USD/ZAR can swing hundreds of pips due to political risk and low liquidity. Volatility offers higher profit potential but also greater downside risk.
EUR/USD and USD/CHF are often seen as the most stable forex pairs. They have high liquidity, relatively low daily ranges, and strong macroeconomic backing from stable economies, making them less prone to extreme spikes compared to volatile pairs like GBP/JPY or exotic currencies.
Currency pair activity depends on regional trading sessions. USD/JPY and AUD/JPY are most active in the Asian session, EUR/USD and GBP/USD peak during London hours, and all USD majors see maximum liquidity during the London–New York overlap, when spreads are lowest.
EUR/USD is the best forex pair for scalping because it offers ultra-low spreads, high liquidity, and frequent intraday movements. Tight spreads during the London–New York overlap (as low as 0.1 pips on ECN brokers) make it ideal for short-term, high-frequency strategies.
Carry trades involve borrowing in a low-interest currency and investing in a higher-yielding one. The classic pairs are AUD/JPY and NZD/JPY, where traders exploit interest rate differentials between commodity-driven economies and Japan’s historically low-rate environment.
The USD/CNY pair is rising in global importance. The Chinese Yuan’s share of forex trading jumped from less than 1% in 2010 to 7% in 2022, reflecting China’s expanding trade and financial influence. However, capital controls limit its liquidity compared to EUR/USD or USD/JPY.
