- What are the most promising currency pairs in 2025?
- Which currency pairs to choose according to the investor profile?
- How to buy currency pairs in Canada?
- Our 5 tips before buying currency pairs
- FAQ
- On the same topic
The currency pairs market continues to evolve rapidly in 2025, driven by shifting global economic policies, interest rate changes, and geopolitical developments. Last year saw significant volatility and sharp movements, prompting investors to closely monitor market trends. As a result, many are now seeking out the most promising opportunities to capitalise on in 2025. This guide provides an overview of top-rated currency pairs, considering factors such as historical performance, market size, growth outlook, volatility, and sector trends—ideal for both new and seasoned investors.
Warning!
The content of this page is provided for informational purposes only and does not constitute investment advice. Before investing, it is essential to conduct your own research, assess the risks involved, and act with caution. Ensure you are aware of and compliant with all applicable Canadian regulations.
What are the most promising currency pairs in 2025?
Investing in currency pairs is a dynamic approach to the forex market, driven by global macroeconomics, liquidity, volatility, and capital flows. For Canadian investors in 2025, certain currency pairs stand out for their robust trading volumes, influence on global markets, and potential for trend development. The comparative table below highlights the 10 most popular and promising currency pairs, evaluated on essential criteria such as volatility, liquidity, average spreads, and their correlation with other assets.
| Pair | Volatility | Liquidity | Correlation (Equities/Commodities) | Avg Spread (pips) | Market Share (%) |
|---|---|---|---|---|---|
| EUR/USD | Medium | Very High | Strong with global equities | 0.7 | 22.7 |
| USD/JPY | Medium | Very High | Moderate with risk-off | 0.9 | 13.2 |
| GBP/USD | High | High | Correlated with UK/US equities | 1.2 | 9.6 |
| USD/CAD | Medium | High | Linked to oil/commodities | 1.3 | 4.4 |
| AUD/USD | High | High | Sensitive to Asia, commodities | 1.0 | 5.4 |
| USD/CHF | Low | High | Safe haven; negative equity link | 1.1 | 3.5 |
| NZD/USD | High | Medium | Linked to Asia-Pacific equities | 1.4 | 2.1 |
| EUR/GBP | Low | Medium | Political/currency block factors | 1.1 | 2.0 |
| USD/CNH | High | Medium | China-sensitive, EM risk proxy | 2.5 | 3.1 |
| EUR/JPY | Medium | High | Cross-currency macro flows | 1.7 | 1.7 |
EUR/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current Price | 1.1830 USD (July, 2025) | Reflects recent appreciation and trend strength |
| End-of-Year Forecast | 1.2100 USD | Provides a benchmark for trend-following traders |
| Volatility | Medium | Balances opportunity and risk |
| Liquidity | Very high | Ensures low transaction costs and efficiency |
| Avg Spread | 0.7 pips | Key for active day traders |
| Correlation | Strong with global risk sentiment | Indicates macro sensitivity |
| Market Share | 22.7% of forex volume | Implies dominant market influence |
| Typical Trade Size | Large institutional and retail | High accessibility for varied investor types |
| Session Activity | Peaks during European/US overlaps | Affects best trading hours |
| Regulatory Status | Highly regulated globally | Ensures transparency and investor protection |
EUR/USD is considered the bellwether of the forex market, consistently leading in market share and setting the tone for liquidity and pricing worldwide. Its moderate volatility makes it attractive for both new and experienced investors, while tight spreads and regulatory clarity enhance its reputation as a preferred benchmark pair. The pair’s deep links to economic trends in both Europe and the US also make it useful for those seeking exposure to global macro events.
With solid liquidity throughout the London and New York sessions, EUR/USD can react swiftly to policy changes and macroeconomic announcements. Market participants appreciate its mix of trend potential and low transaction costs, supporting its ongoing popularity in 2025.
USD/JPY
| Criterion | Description | Why it matters |
|---|---|---|
| Current Price | 144.30 JPY (July, 2025) | Critical for technical and carry trade strategies |
| End-of-Year Forecast | 147.50 JPY | Indicates expected direction for policy traders |
| Volatility | Medium | Attractive for tactical trading |
| Liquidity | Very high | Enables smooth execution at scale |
| Avg Spread | 0.9 pips | Favours frequent traders and algorithms |
| Correlation | Moderate risk-off asset | Used as a safe haven in crises |
| Market Share | 13.2% of forex volume | Offers mass market interest and depth |
| BOJ Policy Impact | High sensitivity | Reacts rapidly to monetary announcements |
| Session Activity | Tokyo and US session peaks | Good liquidity in Asian/US hours |
| Economic Link | Yen is proxy for Asian risk | Useful for regional/macro diversification |
USD/JPY draws interest for its close ties to Japanese monetary policy and its frequent use as a global risk gauge. The yen’s role as a safe-haven means this pair can be highly volatile during periods of economic uncertainty, attracting traders seeking either hedging or speculation opportunities.
With some of the lowest spreads in forex and deep liquidity during Asian and US trading sessions, USD/JPY maintains strong appeal for both tactical traders and longer-term portfolio strategists, especially when Bank of Japan policy is in focus.
GBP/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current Price | 1.3704 USD (July, 2025) | Reflects recent GBP strength and volatility |
| End-of-Year Forecast | 1.4000 USD | Indicates risk-on sentiment in developed markets |
| Volatility | High | Good for active traders seeking movement |
| Liquidity | High | Ensures reasonable execution at scale |
| Avg Spread | 1.2 pips | Slightly higher spreads due to volatility |
| Correlation | Linked to UK/US data | Useful in analyzing economic divergences |
| Market Share | 9.6% of forex volume | Substantial presence in forex |
| Political Sensitivity | High | Reacts to UK/US news and Brexit implications |
| Session Activity | London/New York overlaps | Ideal for day trading in active periods |
| Economic Link | UK growth/US dollar cycles | Useful for macro allocation strategies |
GBP/USD is prized for its meaningful moves and relatively high volatility, often driven by UK-specific news and macroeconomic data. Its correlations with investment flows between the UK and US mean that GBP/USD is a preferred trading vehicle during major global events.
The pair’s liquidity remains deep, especially during the London and New York overlaps, offering attractive opportunities for those seeking both short-term and swing trades in 2025.
USD/CAD
| Criterion | Description | Why it matters |
|---|---|---|
| Current Price | 1.3215 CAD (July, 2025) | Closely watched by Canadian investors |
| End-of-Year Forecast | 1.3450 CAD | Useful for export/import forecasts |
| Volatility | Medium | Balances movement with stability |
| Liquidity | High | Ensures competitive pricing |
| Avg Spread | 1.3 pips | Relevant for frequent CAD hedging activities |
| Correlation | Tied to oil and commodities | Reflects Canada’s resource-driven economy |
| Market Share | 4.4% of global forex volume | High regional relevance |
| Bank of Canada Rate | High impact | Monetary policy a key short-term driver |
| Session Activity | US/Canadian market overlap | Focus on North American business hours |
| Economic Link | Canada-US trade sensitivity | Important for business planning |
USD/CAD is a significant pair in the Canadian context, strongly influenced by oil prices and Canada’s interaction with the US economy. Its direct relevance to Canadian trade and investment makes it a top pick for those following domestic and cross-border macro trends.
The pair’s regular volatility and high liquidity ensure viability for hedge strategies, while political or commodity price shifts can trigger broader trading opportunities in 2025.
AUD/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current Price | 0.7440 USD (July, 2025) | Shows Australian dollar’s resilience |
| End-of-Year Forecast | 0.7700 USD | Highlights commodity and risk sentiment |
| Volatility | High | Good for high-risk, active traders |
| Liquidity | High | Ensures reasonable trade execution |
| Avg Spread | 1.0 pips | Moderate cost for entry/exit |
| Correlation | Strong with commodities | Key when trading resource narratives |
| Market Share | 5.4% of global forex volume | Important player, especially in Asia-Pacific |
| RBA Policy Impact | Moderate | Central bank changes can drive volatility |
| Session Activity | Asia/London session focus | Suits cross-timezone strategies |
| Economic Link | China ties, global trade | Good for China or EM outlook exposure |
AUD/USD offers pronounced liquidity and clear ties to commodity and Asian growth themes, making it suitable for both macro-oriented and tactical trading. Its volatility is attractive for those seeking returns from global risk cycles in 2025, especially given the influence of mining and agriculture on the Australian economy.
Traders also value AUD/USD for its clear correlation to Chinese growth, providing a practical instrument for global macro diversification.
USD/CHF
| Criterion | Description | Why it matters |
|---|---|---|
| Current Price | 0.8912 CHF (July, 2025) | Reflects traditional safe-haven demand |
| End-of-Year Forecast | 0.9200 CHF | Indicates defensive positioning |
| Volatility | Low | Stable movements for risk-averse traders |
| Liquidity | High | Facilitates safe-haven hedges |
| Avg Spread | 1.1 pips | Low cost for capital preservation |
| Correlation | Negative with risk assets | Good for risk management and diversification |
| Market Share | 3.5% of forex volume | Solid international interest |
| SNB Policy Impact | High sensitivity | Swift response to Swiss National Bank actions |
| Session Activity | Euro/London session activity | Aligned with Swiss/European hours |
| Economic Link | Eurozone and global risk | Useful for managing portfolio shocks |
USD/CHF remains a stable, low-volatility pair, often purchased during times of uncertainty due to the Swiss franc’s safe-haven reputation. It is particularly favoured for hedging and capital preservation strategies in unpredictable global environments.
Canadian investors may appreciate its historical resilience in risk-off environments, adding a useful defensive tool to a broader currency portfolio.
NZD/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current Price | 0.6980 USD (July, 2025) | Indicates New Zealand’s economic pulse |
| End-of-Year Forecast | 0.7200 USD | Reflects Asia-Pacific growth projections |
| Volatility | High | Favourable for traders seeking price swings |
| Liquidity | Medium | Best during Asia-Pacific market hours |
| Avg Spread | 1.4 pips | Considered for frequent trading |
| Correlation | Commodity & China sensitive | Good for macro thematics |
| Market Share | 2.1% of total forex volume | Popular in Asia-Pacific |
| RBNZ Policy Impact | High | Rate changes affect short-term pricing |
| Session Activity | Asia-Pacific hours | Important for time-zone hedgers |
| Economic Link | Dairy/products, trade sentiment | Good for agri-commodity exposure |
NZD/USD is a preferred pair for diversifying into agricultural and Asia-Pacific trends, given New Zealand’s strong exports and macroeconomic health. Its higher volatility makes it great for swing and macro traders looking to play regional growth stories.
Increasing correlations with commodities and regional trade make the pair an increasingly prominent focus in 2025 forecasting and allocations.
EUR/GBP
| Criterion | Description | Why it matters |
|---|---|---|
| Current Price | 0.8580 GBP (July, 2025) | Indicates Euro/UK currency flows |
| End-of-Year Forecast | 0.8800 GBP | Useful for trade and political risk hedging |
| Volatility | Low | Suitable for conservative approaches |
| Liquidity | Medium | Lower cost during European market hours |
| Avg Spread | 1.1 pips | Reasonable for cross-border strategies |
| Correlation | Political/policy risk sensitive | Good barometer for post-Brexit developments |
| Market Share | 2.0% of forex volume | Key for Euro/UK exposure |
| ECB/BoE Policy | High influence | Policy divergence can create trends |
| Session Activity | Euro/London session | Pragmatic for European trading schedules |
| Economic Link | Eurozone vs UK activity | For those diversifying within European assets |
EUR/GBP is widely used for hedging or expressing views on Eurozone and UK divergences, especially after Brexit. Its lower volatility appeals to those prioritizing capital stability and gradual trends in 2025.
The pair is also frequently employed in risk management strategies by European-focused institutions, allowing for tactical adjustments within well-regarded jurisdictions.
USD/CNH
| Criterion | Description | Why it matters |
|---|---|---|
| Current Price | 7.2100 CNY (July, 2025) | Measures China’s global integration |
| End-of-Year Forecast | 7.3500 CNY | Guides EM and trade strategy choices |
| Volatility | High | Exposure to global capital movements |
| Liquidity | Medium | Influenced by official and offshore trading |
| Avg Spread | 2.5 pips | Higher cost reflects controlled trading |
| Correlation | China/EM sentiment | EM proxy during stress periods |
| Market Share | 3.1% of forex turnover | Gaining popularity as EM focus grows |
| PBOC Policy Impact | Extremely high | Driven by central bank and capital controls |
| Session Activity | Peaks in Asia | Best for EM/Asia-active investors |
| Economic Link | Direct link to China’s growth | For global trade/investment sensitivity |
USD/CNH is a key gauge of China’s influence on global macro and capital flows. Its volatility provides opportunities for investors tracking emerging markets, commodities, or trade policy shifts.
The pair’s greater regulatory and policy oversight makes it suitable for informed participants looking to capture moves linked to China’s economic agenda in 2025.
EUR/JPY
| Criterion | Description | Why it matters |
|---|---|---|
| Current Price | 167.50 JPY (July, 2025) | Reflects multi-currency momentum |
| End-of-Year Forecast | 171.00 JPY | Follows cross-currency capital flows |
| Volatility | Medium | Useful for diversification |
| Liquidity | High | Enables flexible execution and low cost |
| Avg Spread | 1.7 pips | Moderate spread for active trading |
| Correlation | Macro cross rates | Aligns with risk and carry trades |
| Market Share | 1.7% of global forex | Adds to cross-border diversity |
| ECB/BOJ Policy Impact | High | Two central banks create arbitrage/trend chances |
| Session Activity | Broad, with Euro/Asia focus | Appeals across major trading zones |
| Economic Link | European/Japanese flows | Direct access to developed economy dynamics |
EUR/JPY is attractive for those seeking exposure to capital trends between Europe and Asia, often reacting strongly to interest rate differentials and global capital flows.
With diverse session liquidity and the interplay of ECB and BOJ policy, EUR/JPY offers both tactical volatility and broader macro diversification for engaged currency traders in 2025.
Compare the best Forex brokersCompareWhich currency pairs to choose according to the investor profile?
When choosing which assets in the currency pairs category to buy, it’s important to consider your investor profile, financial goals, and experience with the forex market. Beginners may prefer stable, major pairs with high liquidity, while more experienced traders might look at minor or exotic pairs to diversify their portfolio. Your risk tolerance, time commitment, and learning preference should help guide your selection process.
| Investor Profile | Recommended Assets |
|---|---|
| Beginner | Major currency pairs (e.g., EUR/USD, USD/CAD, GBP/USD) |
| Intermediate | Major pairs plus some minor pairs (e.g., AUD/JPY, EUR/GBP) |
| Experienced | Major, minor, and select exotic pairs (e.g., USD/TRY, USD/ZAR) |
Good to know
Beginners are encouraged to start with a small budget to learn effectively while limiting excessive risk.
How to buy currency pairs in Canada?
Buying financial assets is easier than ever for Canadians, thanks to secure and regulated platforms. Whether you’re interested in stocks, cryptocurrencies, ETFs, or commodities, getting started involves a series of straightforward steps designed to help keep your investments safe.
| Step | What to do |
|---|---|
| Choose a reliable exchange or broker | Select a licensed platform in Canada with a strong reputation for safety and customer support. |
| Create an account and verify identity | Register and follow the identity verification process required by Canadian law for all investors. |
| Deposit funds (bank card or wire) | Add money to your account using a method you trust, such as a bank transfer or a debit/credit card. |
| Purchase desired assets | Browse the available stocks, ETFs, cryptocurrencies, or commodities and place your order. |
| Secure their storage | Store your investments safely: use a securities account for stocks/ETFs or an external wallet for crypto. |
Good to know:
In Canada, profits from selling financial assets may be subject to tax. It’s important to keep detailed records of all your transactions for accurate reporting and peace of mind.
Our 5 tips before buying currency pairs
Before investing in currency pairs, it’s essential for beginners to understand the unique risks and mechanics of the forex market. Following solid recommendations helps protect your capital, improves your chances of success, and supports investing with confidence. In Canada, financial activities are regulated by authorities such as the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Securities Administrators (CSA), providing an additional layer of investor protection.
| Tip | Explanation |
|---|---|
| Choose a regulated broker | Select brokers licensed by IIROC or other recognized Canadian authorities to safeguard your funds and access dispute resolution. |
| Start with a demo account | Practise trading with virtual funds to learn platform features and market dynamics without risk. |
| Set a clear budget and risk limit | Decide beforehand the maximum amount you can afford to invest and lose, avoiding overexposure. |
| Learn how leverage works | Understand that leverage can amplify both gains and losses, so use it carefully. |
| Keep up with global and local news | Economic and geopolitical events can strongly impact currency values; staying informed is key. |
FAQ
What are currency pairs and how do they work for Canadian investors in 2025?
Currency pairs represent how much of one currency you need to buy another, such as CAD/USD. When you trade currency pairs, you buy one currency and sell another at the same time. The value of a pair changes with supply and demand, interest rates, and world events, allowing investors to seek profit from price fluctuations.
How can I assess if a currency pair is a smart investment in 2025?
Look for pairs with high trading volume, low spreads, and strong ties to international economic activity. It is important to track economic indicators and news that impact the countries involved, as well as to understand how major events can move prices in unpredictable ways.
Is forex trading of currency pairs regulated in Canada?
Yes, forex trading is regulated by the Investment Industry Regulatory Organization of Canada (IIROC). Always choose brokers registered with this authority to ensure your capital is protected by investor safeguards and that you are trading in a secure and supervised environment.
What are the main risks involved in trading currency pairs?
Currency pair trading involves significant risks, including leverage, rapid market changes, and geopolitical events. Small movements can lead to either gains or losses, so it’s important to use risk management strategies, only invest what you can afford, and stay informed about global events.
What are some strategies I can use to trade currency pairs in 2025?
Common approaches include trend following (buying in an upward trend or selling in a downward trend), setting stop-losses to manage risk, and staying updated on major economic announcements. Beginners should practise on demo accounts and gradually increase real exposure as they gain experience.
What are currency pairs and how do they work for Canadian investors in 2025?
Currency pairs represent how much of one currency you need to buy another, such as CAD/USD. When you trade currency pairs, you buy one currency and sell another at the same time. The value of a pair changes with supply and demand, interest rates, and world events, allowing investors to seek profit from price fluctuations.
How can I assess if a currency pair is a smart investment in 2025?
Look for pairs with high trading volume, low spreads, and strong ties to international economic activity. It is important to track economic indicators and news that impact the countries involved, as well as to understand how major events can move prices in unpredictable ways.
Is forex trading of currency pairs regulated in Canada?
Yes, forex trading is regulated by the Investment Industry Regulatory Organization of Canada (IIROC). Always choose brokers registered with this authority to ensure your capital is protected by investor safeguards and that you are trading in a secure and supervised environment.
What are the main risks involved in trading currency pairs?
Currency pair trading involves significant risks, including leverage, rapid market changes, and geopolitical events. Small movements can lead to either gains or losses, so it’s important to use risk management strategies, only invest what you can afford, and stay informed about global events.
What are some strategies I can use to trade currency pairs in 2025?
Common approaches include trend following (buying in an upward trend or selling in a downward trend), setting stop-losses to manage risk, and staying updated on major economic announcements. Beginners should practise on demo accounts and gradually increase real exposure as they gain experience.
On the same topic
