- What are the most promising currency pairs in 2025?
- Which Currency Pairs to Choose Based on Your Investor Profile?
- How to buy currency pairs in the UK?
- Our 5 tips before buying currency pairs
- FAQ
The currency pairs market continues to evolve rapidly as global economic shifts, central bank decisions, and geopolitical events influence volatility and market sentiment. Last year saw dramatic swings in major and emerging currency pairs, prompting both new and experienced investors to reassess their strategies. With many seeking to identify the most promising opportunities in 2025, this page provides an overview of assets selected for their historical performance, market size, growth potential, volatility, and sector trends. This guide is designed to support investors at all levels in making more informed trading decisions.
Warning!
The content on this page is provided for informational purposes only and does not constitute investment advice. Before investing in commodities, you should conduct your own research, assess the risks involved, and act with caution, taking into account all applicable regulations.
What are the most promising currency pairs in 2025?
Foreign exchange markets remain a focal point for global investors, traders, and institutions seeking both liquidity and diversification in 2025. Among currency pairs, select combinations have captured the most attention due to their deep liquidity, distinctive volatility profiles, and macroeconomic sensitivity. The following table compares the ten most promising currency pairs this year, chosen for their trading volumes, correlation with key assets, average spreads, and potential for price movement.
| Pair | Volatility | Liquidity | Correlation to other assets | Average Spread | Price drivers |
|---|---|---|---|---|---|
| EUR/USD | Low | Very High | Highly correlated to EU/US data | Very low | Monetary policy, data |
| GBP/USD | Medium | High | Sensitive to risk sentiment | Low | BoE/Fed, Brexit |
| USD/JPY | Medium | Very High | Correlated with yield spreads | Low | BoJ/Fed, yields |
| USD/CHF | Low | High | Inverse to risk assets | Low | SNB, risk flows |
| AUD/USD | Medium | High | Linked to commodities | Low | RBA, commodities |
| USD/CAD | Medium | High | Commodity and oil driven | Low | BoC, oil prices |
| EUR/GBP | Low | High | European macro focus | Low | BoE/ECB, EU events |
| NZD/USD | Medium | Medium-High | Commodity and Asia sentiment | Low | RBNZ, commodities |
| EUR/JPY | High | High | Volatile risk/Europe factors | Moderate | ECB/BoJ, sentiment |
| USD/SGD | Low-Med | Medium | Asian/EM exposure | Low | MAS, USD flows |
EUR/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | Approximately 1.08 USD | Indicates current valuation, crucial for trade planning. |
| End-of-year forecast (USD) | 1.10–1.13 | Shows analyst expectations based on macro trends. |
| Volatility | Low | Lower risk, supports stable trading environments. |
| Liquidity | Very high | Ensures tight spreads and ease of entry/exit. |
| Market capitalisation proxy | Largest forex trading volume | Popularity among institutions increases reliability of signals. |
| Trading volume (daily) | Over $1.5 trillion | High trading activity ensures consistent pricing. |
| Major price drivers | Fed/ECB policy, US/EU data | Determines short and mid-term direction for the pair. |
| Spread (pips) | Usually under 1 pip | Cost-effective for frequent traders. |
| Typical investor | All types | Accessible strategy for beginners through to professionals. |
| Correlation | High with global risk assets | Impacts diversification strategies. |
The EUR/USD pair is renowned for its stability, deep liquidity, and responsiveness to US and Eurozone economic developments. In 2025, attention centres on Federal Reserve and ECB policy shifts, with lower volatility making this pair appealing for conservative strategies. Constant trading activity and minimal spread guarantee efficient execution, while its wide acceptance supports risk management and coverage for different trading horizons.
GBP/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | Approximately 1.36 USD | Indicates present market levels and trend evolution. |
| End-of-year forecast (USD) | 1.37–1.40 | Offers guidance based on central bank and macro shifts. |
| Volatility | Medium | Provides tradable swings for active traders. |
| Liquidity | High | Ample trading opportunities and smooth order fills. |
| Market capitalisation proxy | Among top traded pairs | Reflects institutional and retail trader interest. |
| Trading volume (daily) | Over $500 billion | Confirms high participation and quick execution. |
| Major price drivers | BoE/Fed, UK/US data, Brexit | UK events, Fed shifts and data releases fuel GBP/USD movements. |
| Spread (pips) | 1–2 | Trading remains cost-efficient for most volumes. |
| Typical investor | Swing, news, and macro traders | Used by those seeking volatility and macro exposure. |
| Correlation | Linked to risk sentiment | Useful for global macro and hedging strategies. |
GBP/USD offers robust liquidity with enough volatility to engage both intraday and swing traders. In 2025, the focus is on BoE policy changes and UK economic recovery, with seasonal volatility peaks around political and macro news. The pair’s established status in institutional trading and its sensitivity to risk sentiment make it a valuable barometer for Sterling and global flows.
USD/JPY
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | Approximately 155 JPY | Indicates dollar-yen trend and global risk posture. |
| End-of-year forecast | 153–158 JPY | Offers macro outlook with incoming BoJ/Fed pivots. |
| Volatility | Medium | Balances risk and steady trading opportunities. |
| Liquidity | Very high | Supports full market access and order reliability. |
| Market capitalisation proxy | Top global trading pair | High activity ensures transparency and fair price discovery. |
| Trading volume (daily) | Over $1 trillion | Ample volume for professional and retail traders. |
| Major price drivers | Yield curve, BoJ/Fed policy | Monetary policy differentials move the pair significantly. |
| Spread (pips) | 1–2 | Trading costs are globally competitive. |
| Typical investor | Carry traders, global macro | Popular for both risk-on and risk-off strategies. |
| Correlation | Linked to global bond markets | Affects multi-asset portfolios and macro positioning. |
USD/JPY consistently ranks among the most traded forex pairs, benefiting from Japan and the US’s economic prominence. In 2025, investors eye government bond yields and pivots in Bank of Japan policy. Its reliable liquidity, moderate volatility, and clear reaction to macro shifts create tactical opportunities for diverse investor profiles.
USD/CHF
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | Around 0.90 CHF | Shows present dollar strength versus European safe haven. |
| End-of-year forecast (USD) | 0.90–0.94 | Useful for setting risk and reward parameters. |
| Volatility | Low | Attracts low-risk and carry traders. |
| Liquidity | High | Trading entries and exits are typically instantaneous. |
| Market capitalisation proxy | Top-eight volume globally | Sustains tight spreads and market efficiency. |
| Trading volume (daily) | Over $300 billion | Reinforces depth for even large trades. |
| Major price drivers | SNB policy, risk flows, EU news | Political and central bank events move the pair. |
| Spread (pips) | <2 | Keeps cost of trading low for frequent executions. |
| Typical investor | Risk-off, conservative | Suitability for hedgers and investors seeking safe havens. |
| Correlation | Inverse to global risk | Important in diversified and defensive strategies. |
USD/CHF stands out for its safe-haven characteristics, reinforced during times of global stress or uncertainty. As the Swiss National Bank and risk appetite drive flows in 2025, this pair offers insight into risk-off positioning, all with consistently low spreads and reliable execution.
AUD/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | Around 0.67 USD | Serves as a proxy for Asia-Pacific risk and commodities. |
| End-of-year forecast (USD) | 0.68–0.71 | Forecasters use to gauge commodity cycle impact. |
| Volatility | Medium | Attractive for momentum and trend strategies. |
| Liquidity | High | Efficient execution for both short and long positions. |
| Market capitalisation proxy | Top global pair with Asia ties | High regional interest aids volume and liquidity. |
| Trading volume (daily) | Over $250 billion | Confirms deep and dynamic trading interest. |
| Major price drivers | RBA, metals, risk sentiment | Commodity cycles and central banks drive AUD/USD performance. |
| Spread (pips) | 1–3 | Cost-effective for a broad range of traders. |
| Typical investor | Commodity, macro, carry | Useful for commodity exposure and global plays. |
| Correlation | High with commodities | Key for portfolio construction and risk hedging. |
AUD/USD captures shifts in Asia-Pacific growth and commodity cycles, making it a proxy for broader risk appetite in 2025. Its medium volatility and high liquidity ensure flexibility, while commodity prices and Reserve Bank of Australia moves keep it responsive to both global and local events.
USD/CAD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | Around 1.32 CAD | Key for tracking USD versus major commodity exporter. |
| End-of-year forecast (USD) | 1.30–1.34 | Reflects anticipated oil price and central bank actions. |
| Volatility | Medium | Allows for swing trading and tactical positioning. |
| Liquidity | High | Enables efficient market entry and exit. |
| Market capitalisation proxy | Top-10 global pair | Reliable execution and pricing for large orders. |
| Trading volume (daily) | Around $200 billion | Supports deep liquidity and smooth trading. |
| Major price drivers | BoC, oil markets, US data | Central banks and oil volatility lead pair direction. |
| Spread (pips) | 1–2 | Keeps trading costs low for active traders. |
| Typical investor | Commodity, North America | Attracts those invested in dollar and oil price trends. |
| Correlation | Linked to oil prices | Useful for hedging energy and currency exposure. |
USD/CAD remains essential for those following energy markets and North American trade. Oil price swings and Bank of Canada policy will dominate in 2025, with liquidity and stable spreads supporting robust trading across investor segments.
EUR/GBP
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | About 0.85 GBP | Reflects euro zone vs. UK developments. |
| End-of-year forecast | 0.85–0.88 GBP | Offers perspective on European and UK risk factors. |
| Volatility | Low | Appeals to risk-averse investors and hedgers. |
| Liquidity | High | Excellent for portfolio balancing and defensive plays. |
| Market capitalisation proxy | Major European pair | Broad usage supports active trading but low noise. |
| Trading volume (daily) | Over $120 billion | Ensures robust order book and quick trades. |
| Major price drivers | BoE/ECB policy, Brexit news | Policy changes and events have consistent influence. |
| Spread (pips) | 1–2 | Lower trading costs benefit frequent portfolio rebalancing. |
| Typical investor | Hedge, income, macro | Suitable for exposure to both economies with less volatility. |
| Correlation | Intra-European risk | Used for regional diversification, especially amid EU/UK shifts. |
EUR/GBP is especially useful for investors tracking European and UK differentials, offering a quieter alternative with strong liquidity and frequent arbitrage opportunities. In 2025, it becomes even more significant given Brexit aftershocks and central bank divergence.
NZD/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | Around 0.61 USD | Represents New Zealand’s global trade and risk appetite. |
| End-of-year forecast (USD) | 0.63–0.67 | Important for forward planning and risk management. |
| Volatility | Medium | Offers tactical entry and exit points for active traders. |
| Liquidity | Medium-high | Adequate for dynamic trading and scaling positions. |
| Market capitalisation proxy | Favoured in Asia-Pacific trading | Accessibility for cross-border investors. |
| Trading volume (daily) | Around $80 billion | Sufficient for efficient orders and moderate impact. |
| Major price drivers | RBNZ, exports, China news | Trade data and central bank policy set the tone. |
| Spread (pips) | 2–3 | Acceptable for less volatile but trend-driven exposure. |
| Typical investor | Carry, yield, Asia focus | Used by traders seeking yield and Asian economic signals. |
| Correlation | Linked to commodities/China | Key for diversification in Asia-Pacific strategies. |
NZD/USD highlights commodity and Asia growth exposure, tracking both yield curves and export cycles. Fluctuations in China and the Reserve Bank of New Zealand’s actions are particularly impactful, placing this pair in the spotlight for 2025 global trend seekers.
EUR/JPY
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | About 167 JPY | Tracks cross-border risk and rate movements in Europe/Asia. |
| End-of-year forecast | 166–170 JPY | Critical for strategies involving volatility and momentum. |
| Volatility | High | Delivers large price swings for tactical traders. |
| Liquidity | High | Efficient trading across both European and Asian sessions. |
| Market capitalisation proxy | Major cross currency pair | Popularity ensures ample counterparties and market depth. |
| Trading volume (daily) | $80–100 billion | Enables quick scale-in/out for trend or reversal plays. |
| Major price drivers | ECB/BoJ, risk sentiment | Monetary policy and volatility shape direction. |
| Spread (pips) | 2–4 | Acceptable given significant trading opportunities. |
| Typical investor | Volatility, event, hedge | Favourable for tactical high-volatility and hedging traders. |
| Correlation | Linked to risk/European data | Crucial for diversified, cross-regional strategies. |
EUR/JPY is valued for volatility and exposure to rates in both Europe and Asia, often responding quickly to macro events and yielding cross-asset trading opportunities. It serves as a key tool for those seeking momentum and volatility-driven trading in 2025.
USD/SGD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | Around 1.35 SGD | Benchmarks USD against a key Asian and global trade hub. |
| End-of-year forecast (USD) | 1.33–1.36 | Outlook ties to Fed moves and Asian macro trends. |
| Volatility | Low-medium | Appealing to those favouring gradual price adjustment. |
| Liquidity | Medium | Adequate for retail/institutional traders alike. |
| Market capitalisation proxy | Key emerging/Asian pair | Expanding in tandem with growth in Asian FX markets. |
| Trading volume (daily) | $50–70 billion | Offers reasonable depth with moderate price impact. |
| Major price drivers | MAS, risk sentiment, China data | Singapore’s policy and Asia news often dictate direction. |
| Spread (pips) | 1–2 | Allows cost-effective rebalancing and tactical trading. |
| Typical investor | Macro, Asia, hedge | Used for regional exposure and volatility hedging. |
| Correlation | Regional Asian assets | Useful for Asia-focused portfolios and EM strategies. |
USD/SGD shines as a benchmark for Asia and EM macro investors. In 2025, evolving trade flows and regional policy are likely to keep this pair active, offering steady trading conditions while reflecting both local and global economic forces.
Compare the best Forex brokersCompareWhich Currency Pairs to Choose Based on Your Investor Profile?
Choosing which currency pairs to buy should be guided by your investor profile, your objectives, and your level of trading experience. The foreign exchange market offers a wide variety of pairs, but the best options for you will depend on how comfortable you are with market volatility, your trading knowledge, and your risk appetite. Here is an overview of suggested starting points by investor type:
| Investor Profile | Recommended Assets |
|---|---|
| Beginner | Major pairs with high liquidity and stability, such as EUR/USD, GBP/USD, USD/JPY. |
| Intermediate | Major and minor pairs, including EUR/GBP, AUD/USD, USD/CHF, or USD/CAD, to explore more opportunities with moderate risk. |
| Experienced | A broader range that includes emerging market and exotic pairs like USD/ZAR, EUR/TRY, or cross pairs, offering higher volatility and potential returns. |
Good to know:
If you’re new to trading currency pairs, consider starting with a small budget so you can learn gradually and keep your risk well managed.
How to buy currency pairs in the UK?
Buying financial assets has become accessible to everyone thanks to secure, easy-to-use online platforms. Whether you’re interested in stocks, ETFs, cryptocurrencies, commodities, or currency pairs, you can now get started in just a few simple steps, even without previous experience.
| Step | Description |
|---|---|
| Choose a reliable exchange or broker | Research different platforms and select one that is reputable, regulated, and suits your needs. |
| Create an account and verify identity | Register on your chosen platform and complete ID verification as required by UK regulations. |
| Deposit funds (bank card or wire transfer) | Add money to your account using a bank card or a secure bank transfer. |
| Purchase desired assets | Search for and buy the specific asset you want via the platform’s interface. |
| Secure their storage | Store stocks/ETFs in a securities account, and cryptocurrencies in an external wallet for safety. |
Tax on gains from selling financial assets
Any gains you make from selling financial assets may be subject to tax in the UK. It is important to keep accurate records of all your transactions, as these will help you complete your tax return correctly and provide evidence if required by HMRC.
Our 5 tips before buying currency pairs
Before investing in currency pairs, it’s crucial to understand the unique risks and characteristics of the forex market. Trading currency pairs differs significantly from stocks or other assets due to its volatility, leverage, and the global factors that can influence exchange rates. By following a few essential recommendations and being mindful of local regulations, you can help ensure your experience is both educational and safe. Remember, in the UK, forex trading is regulated by the Financial Conduct Authority (FCA), which aims to protect investors.
| Tip | Explanation |
|---|---|
| Learn the basics of forex (currency pairs) | Take time to understand how currency pairs work and what moves exchange rates before investing. |
| Choose a regulated broker | Make sure your broker is authorised by the FCA to protect your funds and ensure fair trading. |
| Start with a demo account | Practise with virtual funds to gain experience and build confidence before risking your own money. |
| Set a clear budget and use risk management | Only invest what you can afford to lose and use tools like stop-loss orders to manage your exposure. |
| Stay updated on economic news | Economic events can move currencies fast, so follow reliable sources and be prepared for volatility. |
FAQ
What is the best opportunity to trade currency pairs in 2025?
The best opportunities to trade currency pairs in 2025 often arise around major economic events and shifts in global central bank policies. Staying informed about interest rate changes, inflation data, and geopolitical news can help you spot periods of high volatility and potential opportunity. The unpredictable nature of the market means timing and caution are essential.
How can I tell if a currency pair is promising for investment?
A promising currency pair typically shows consistent trading volume, economic stability in the countries involved, and clear price trends. You can look for pairs where economic data and news support a clear direction. Remember, no pair is risk-free, and past performance does not guarantee future results.
What strategy should I adopt to invest in currency pairs in 2025?
Start by learning how currency pair trading works, then develop a plan that fits your financial goals and risk comfort. Many beginners benefit from using stop-loss orders and only trading with funds they can afford to lose. Regularly reviewing your trades and staying updated on market developments is always important.
What are the main risks when trading currency pairs?
Currency pair trading is affected by sudden price swings, global events, and unexpected news. High leverage, commonly used in forex markets, can also increase gains and losses. Being aware of how quickly conditions can change helps in making more informed decisions.
Are there specific tax rules for trading currency pairs in the UK in 2025?
Profits from trading currency pairs are typically subject to Capital Gains Tax or Income Tax in the UK, depending on your circumstances. It is important to keep accurate records of all trades and consult current HMRC guidelines or a tax professional for the most up-to-date information.
What is the best opportunity to trade currency pairs in 2025?
The best opportunities to trade currency pairs in 2025 often arise around major economic events and shifts in global central bank policies. Staying informed about interest rate changes, inflation data, and geopolitical news can help you spot periods of high volatility and potential opportunity. The unpredictable nature of the market means timing and caution are essential.
How can I tell if a currency pair is promising for investment?
A promising currency pair typically shows consistent trading volume, economic stability in the countries involved, and clear price trends. You can look for pairs where economic data and news support a clear direction. Remember, no pair is risk-free, and past performance does not guarantee future results.
What strategy should I adopt to invest in currency pairs in 2025?
Start by learning how currency pair trading works, then develop a plan that fits your financial goals and risk comfort. Many beginners benefit from using stop-loss orders and only trading with funds they can afford to lose. Regularly reviewing your trades and staying updated on market developments is always important.
What are the main risks when trading currency pairs?
Currency pair trading is affected by sudden price swings, global events, and unexpected news. High leverage, commonly used in forex markets, can also increase gains and losses. Being aware of how quickly conditions can change helps in making more informed decisions.
Are there specific tax rules for trading currency pairs in the UK in 2025?
Profits from trading currency pairs are typically subject to Capital Gains Tax or Income Tax in the UK, depending on your circumstances. It is important to keep accurate records of all trades and consult current HMRC guidelines or a tax professional for the most up-to-date information.
