Top 10 most traded currency pairs

What are currency pairs?

A currency pair is the price of one currency expressed in terms of another. In the pair EUR/USD, the euro is the base currency, and the US dollar is the quote currency. The price tells you how many US dollars one euro buys. When you trade a currency pair, you simultaneously buy the base currency and sell the quote currency (or vice versa). All forex trading involves two currencies at once by definition.

Currency pairs are divided into three categories: majors (pairs including the US dollar against other major currencies), minors or crosses (pairs between major currencies that do not include the US dollar) and exotics (a major currency paired with an emerging market or smaller economy currency). Major pairs dominate global volume and carry the lowest spreads. They are the natural starting point for most forex traders. The US dollar is involved in over 85% of all forex transactions, according to the Bank for International Settlements 2025 triennial survey.

Top 10 most traded forex currency pairs

Source: Bank for International Settlements (BIS) Triennial Central Bank Survey, April 2025. Volumes represent net-net basis percentages of average daily turnover. The next BIS triennial survey is due in 2028.

The major pairs in detail

1. EUR/USD: the world's most traded pair

EUR/USD accounts for over a fifth of all forex volume. The pair represents the two largest economies globally and is characterised by very tight spreads, typically 0.6-1.2 pips with major brokers during the London and New York sessions. ECB and Federal Reserve policy divergence is the most powerful long-term driver: when the Fed raises rates more aggressively than the ECB, the dollar typically strengthens against the euro, pushing EUR/USD lower, and vice versa. For most beginner forex traders, EUR/USD is the recommended starting point due to its liquidity, tight spreads and extensive historical data.

2. USD/JPY: the yen's carry trade legacy

USD/JPY is the second most traded pair and is particularly significant because of the yen's historical role as a funding currency in carry trades. Japanese interest rates were near zero for decades, making it cheap to borrow yen and invest in higher-yielding currencies. As the Bank of Japan began normalising rates from 2024 onwards, yen pairs saw heightened volatility. USD/JPY is sensitive to risk sentiment globally: yen strengthens in risk-off environments as carry trades unwind; it weakens when risk appetite is strong.

3. GBP/USD: 'cable'

GBP/USD, known as 'cable' due to the transatlantic telegraph cables used for historical communication, represents sterling against the dollar. The British pound is the oldest actively traded currency in global forex, and London is the world's largest FX centre, handling over 40% of global turnover. GBP/USD is heavily influenced by Bank of England rate decisions, UK inflation data and, since 2016, the ongoing implications of Brexit for UK trade. Just as FTSE 100 companies' revenues are significantly affected by GBP movements (since approximately 75% of FTSE revenues come from outside the UK), GBP/USD moves can have meaningful second-order effects on UK equity portfolios.

4. USD/CNY: China's growing influence

The US dollar/Chinese yuan pair reflects the world's two largest economies by nominal GDP. Unlike fully floating currencies, the yuan operates within a daily trading band set by the People's Bank of China, making it a managed float. This means CNY does not respond to market forces in the same way as EUR/USD; PBOC interventions and band adjustments are primary drivers. USD/CNY volumes have grown significantly as China's role in global trade has expanded.

5-7. USD commodity pairs: CAD, AUD, CHF

USD/CAD (the 'loonie') is closely linked to oil prices because Canada is a major oil exporter. Rising oil prices typically support the Canadian dollar, pushing USD/CAD lower. It follows the logic that has been analysed extensively in fashion stocks research and commodity sectors more broadly: the underlying commodity exposure drives the currency.

AUD/USD (the 'Aussie') reflects Australia's role as a major commodity exporter, particularly of iron ore and coal to China. Chinese economic data significantly affects AUD/USD; slowdowns in Chinese manufacturing consistently weaken the Aussie. USD/CHF reflects Switzerland's safe-haven status: the franc strengthens during periods of global uncertainty and weakens when risk appetite is strong.

Minor and cross pairs

EUR/JPY, GBP/JPY and EUR/GBP round out the top 10. Cross pairs can offer trading opportunities when the driving factors differ from those of the majors. GBP/JPY in particular is known for its volatility: combining the pound's sensitivity to UK economic data with the yen's sensitivity to risk sentiment creates wider intraday moves than most major pairs. Managing positions on crosses like GBP/JPY requires extra attention to market conditions, as investor behaviour during volatile markets demonstrates: high-volatility pairs amplify the psychological pressures that lead to decision-making errors.

How to trade currency pairs

Currency pairs can be traded through spread bets and CFDs on our platform. You go long (buy) if you expect the base currency to strengthen against the quote currency, and short (sell) if you expect it to weaken. Spreads on major pairs are tight during London and New York sessions and widen significantly during the quiet overnight period. Overnight funding (swap/rollover) is charged at 10pm UK time on positions held open past the daily close.

For investors who want currency exposure without active trading, currency movements also affect international equity investments: buying USD-denominated US shares creates implicit GBP/USD exposure. Protecting a shares portfolio from currency risk covers hedging strategies specifically designed to manage this second-order exposure without taking on active forex positions.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with us. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

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