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Best Trading Pairs for Forex Trading:
Top Pairs to Trade in 2024
In the dynamic world of Forex trading, choosing the right currency pairs is crucial to achieving consistent profitability. The Forex market is vast, with thousands of currency pairs available for trading. However, not all currency pairs are created equal. Some pairs offer better liquidity, tighter spreads, and more trading opportunities than others.
Whether you are a novice trader or an experienced market participant, understanding the best trading pairs is essential for success.
In this article, we will explore the top Forex pairs to trade, the factors that influence their performance, and how to choose the best pairs based on your trading style. We will also cover the most popular currency pairs and provide insights into how these pairs behave in various market conditions.
What Are Forex Currency Pairs?
A Forex currency pair consists of two currencies: the base currency (the first currency in the pair) and the quote currency (the second currency). The price of the currency pair represents how much of the quote currency is needed to purchase one unit of the base currency.
For example, in the currency pair EUR/USD, EUR is the base currency, and USD is the quote currency. If the price of the pair is 1.2000, it means that 1 Euro is equivalent to 1.20 US Dollars.
Forex pairs are generally categorized into three main types:
Major Pairs: These pairs involve the US Dollar (USD) and are the most traded pairs in the world. Examples include EUR/USD, GBP/USD, and USD/JPY.
Minor Pairs: These pairs do not involve the US Dollar but still feature popular currencies like the Euro or Japanese Yen. Examples include EUR/GBP, EUR/JPY, and GBP/JPY.
Exotic Pairs: These pairs consist of one major currency and one currency from a developing or emerging market. Examples include USD/TRY, USD/BRL, and EUR/ZAR.
Why Choosing the Right Trading Pairs Matters
Selecting the right Forex pairs to trade is essential because each currency pair behaves differently based on factors such as liquidity, volatility, and market sentiment. Here are some reasons why choosing the right pairs can impact your success:
- Liquidity: More liquid pairs tend to have tighter spreads, meaning lower transaction costs for traders. Major pairs are typically the most liquid and, therefore, more favorable for many traders.
- Volatility: Some currency pairs are more volatile than others, creating more potential opportunities for profits (or losses). It’s crucial to understand how volatility works with different pairs.
- Market Sentiment: Currency pairs from countries with strong economies tend to react better to economic news and market sentiment.
Top Forex Pairs to Trade in 2025
1. EUR/USD (Euro/US Dollar)
The EUR/USD is the most traded currency pair in the world, accounting for nearly 24% of daily Forex market transactions. It is considered the benchmark pair because it represents two of the largest and most stable economies: the Eurozone and the United States.
- Why It’s Popular:
- High liquidity and low spreads
- Wide availability of information and analysis
- Strong economic data from the Eurozone and the U.S.
- Trading Characteristics:
- Volatility: Moderate volatility, with frequent short-term moves.
- Market Hours: Best traded during the European and U.S. market sessions.
Analytics: According to DailyFX, EUR/USD has an average daily trading range of 60-80 pips, making it suitable for both long-term traders and short-term scalpers.
2. GBP/USD (British Pound/US Dollar)
The GBP/USD, also known as the Cable, is another highly liquid and popular currency pair. It is influenced by economic data from the U.K. and the U.S., as well as geopolitical events such as Brexit.
- Why It’s Popular:
- High liquidity and frequent volatility
- Strong correlations with global economic events
- Trading Characteristics:
- Volatility: Higher volatility compared to EUR/USD, offering more opportunities for large moves.
- Market Hours: Best traded during the London and New York sessions.
Analytics: According to FXStreet, GBP/USD experiences an average daily range of 80-120 pips, making it ideal for traders who thrive on volatility.
3. USD/JPY (US Dollar/Japanese Yen)
The USD/JPY pair is one of the most popular pairs in the Forex market, particularly for carry trading. The Japanese Yen is considered a safe-haven currency, meaning it often strengthens in times of global uncertainty.
- Why It’s Popular:
- Strong liquidity with low spreads
- Significant interest rate differential for carry trades
- Safe-haven status of the Yen during risk-off market conditions
- Trading Characteristics:
- Volatility: Low-to-moderate volatility, making it ideal for conservative traders.
- Market Hours: Best traded during the Tokyo and New York sessions.
Analytics: OANDA reports that the average daily range for USD/JPY is around 60-80 pips, offering stable trading opportunities.
4. USD/CHF (US Dollar/Swiss Franc)
The USD/CHF pair is another safe-haven pair, with the Swiss Franc (CHF) typically rising during times of global economic or geopolitical stress. This pair is popular among traders looking for low-risk trades in uncertain times.
- Why It’s Popular:
- Low spreads and high liquidity
- Safe-haven status of the Swiss Franc
- Trading Characteristics:
- Volatility: Low volatility, but significant moves during geopolitical tensions.
- Market Hours: Best traded during the European and U.S. sessions.
Analytics: According to Investing.com, the USD/CHF pair’s daily range averages between 40-60 pips, providing a more stable trading environment compared to more volatile pairs.
5. AUD/USD (Australian Dollar/US Dollar)
The AUD/USD pair is influenced by the global commodity market, particularly due to Australia’s role as a major exporter of minerals, energy, and agricultural products. It is one of the most popular commodity currency pairs.
- Why It’s Popular:
- Strong correlation with commodity prices (gold, iron ore)
- Moderate volatility and strong liquidity
- Trading Characteristics:
- Volatility: Moderate volatility, with strong trends driven by commodity markets.
- Market Hours: Best traded during the Sydney and U.S. sessions.
Analytics: The Australian Dollar is particularly sensitive to global commodity prices. In 2023, the AUD/USD pair saw an average daily trading range of 60-100 pips, making it a good choice for medium-term traders.
Other Notable Currency Pairs to Consider
While the pairs above are the most traded, several other currency pairs can offer exciting opportunities based on your trading strategy. Here are a few:
| Currency Pair | Popularity | Volatility | Average Daily Range | Best Traded Hours |
|---|---|---|---|---|
| EUR/GBP | Moderate | Low-Medium | 50-70 pips | European Session |
| GBP/JPY | High | High | 100-150 pips | London & New York |
| EUR/JPY | High | Moderate | 80-100 pips | European Session |
| USD/TRY | Low | High | 150-200 pips | All-Day Volatility |
| NZD/USD | Moderate | Moderate | 50-80 pips | Sydney & U.S. |
Factors to Consider When Choosing Forex Pairs
When selecting the best currency pairs for your trading strategy, consider the following factors:
Liquidity: Major pairs such as EUR/USD and GBP/USD are highly liquid, which reduces trading costs and provides better execution.
Volatility: If you’re a scalper, you may prefer higher volatility pairs like GBP/JPY, while long-term traders might choose less volatile pairs like USD/CHF.
Market Conditions: During risk-on periods, pairs like AUD/USD or NZD/USD perform well, while during risk-off conditions, safe-haven currencies like USD/JPY or USD/CHF dominate.
Trading Hours: The best time to trade a pair often depends on the trading session. For example, EUR/USD is best traded during the overlap of the European and U.S. markets.
Conclusion: Best Trading Pairs for Forex Success
Selecting the best trading pairs is crucial for long-term success in Forex trading. By understanding the characteristics of major, minor, and exotic currency pairs, traders can make informed decisions about which pairs suit their trading style.
While EUR/USD, GBP/USD, and USD/JPY are among the most liquid and popular pairs, other options like AUD/USDand NZD/USD can also offer lucrative opportunities based on your trading approach.
Ultimately, the best pair for you will depend on your risk tolerance, trading style, and market conditions. By leveraging technical analysis, staying informed about market events, and utilizing proper risk management, you can make the most out of these Forex pairs and increase your chances of success.
Author,
leading expert at FBX
Robert has been working in financial market valuation and analysis since 2008.
Years of experience and deep immersion in the topic give us every reason to trust his expertise.
