Disclaimer: FOREX.com Australia is a Contract for Difference (CFD) issuer and does not offer direct ownership of currency pairs or forex. This material is provided for general information and educational purposes only and does not take into account your objectives, financial situation or needs.
The forex market is the largest financial market in the world – trillions of dollars change hands every day. However, around 55% of global trade is concentrated in just five currency pairs¹. These so-called “majors” offer the highest liquidity, tight spreads and are perfect can be good for beginners. Below, you will learn about the five most important forex pairs – including current data, special features and typical price behavior.
Overview of the top 5 currency pairs
| Currency pair | Exchange Rate (13.06.2025) | Share of global FX volume¹ | Special Features |
| EUR/USD (Euro/US-Dollar) | 1 € ≈ 1.156 US$ | ca. 23% | Highest trading volume worldwide |
| USD/JPY (US-Dollar/Yen) | 1 US$ ≈ 144,3 ¥ | ca. 14% | Considered as a safe haven in times of uncertainty |
| GBP/USD (Brit. Pound/US-Dollar) | 1 £ ≈ 1.355 US$ | ca. 10% | Politically driven (e.g. Brexit) |
| AUD/USD (Austral. $US-Dollar) | 1 A$ ≈ 0.649 US$ | ca. 5% | Strong correlation with commodity prices (gold, iron ore) |
| USD/CAD (US-Dollar/CAN-$) | 1 US$ ≈ 1,363 C$ | ca. 5% | Oil price strongly influences exchange rate |
¹ Source: Triennial Central Bank Survey 2022 by the Bank for International Settlements (BIS)
EUR/USD – Euro against US dollar
Introduction:
The world's most traded currency pair connects the two largest economic areas: the eurozone and the US. It is considered the benchmark for all foreign exchange trading.
- Exchange rate: 1 € = 1.156 $
- Share of trading volume: approx. 23%
-
Special features:
- Highest liquidity in the forex market
- Very narrow spreads
- Influenced by ECB and Fed interest rate policy
- Frequently the target of algorithmic trading and fundamental analysis
EUR/USD: What moves this classic currency pair:
EUR/USD usually moves calmly and predictably. Large movements are often caused by interest rate signals, US labor market data or European economic data. The US dollar often shows strength during geopolitical crises.
Why EUR/USD is the most popular pair:
The EUR/USD is extremely popular among traders and investors worldwide because it offers a combination of stability, transparency and a steady flow of news. Economic data for both regions is published regularly and is easily accessible, which facilitates informed decisions. In addition, the enormous liquidity ensures fast order execution and low trading costs.
USD/JPY – US dollar against Japanese yen
This pair reflects the relationship between the US and Japan's export-driven economy. It is a core instrument for institutional traders, particularly in Asia.
Key facts:
- Exchange rate: 1 USD = 144.3 JPY
- Share of trading volume: approx. 14%
-
Special features:
- High liquidity during Asian trading hours
- The yen is considered a “safe haven” in times of uncertainty
- Interest rate differential between the Fed and the Bank of Japan as a price driver
- Popular with carry traders
USD/JPY in the spotlight: crisis risks vs. interest rate differential
USD/JPY reacts sensitively to global risks. In times of crisis, the yen tends to appreciate. In quiet phases, the pair can form stable trends, especially when US interest rates rise and Japanese rates remain low.
Why USD/JPY is one of the most traded pairs:
USD/JPY is particularly popular because it reflects a clear dynamic between risk aversion and interest income. Traders use it for both hedging and active speculation, as the reaction to geopolitical developments is often quick and clear. Thanks to its high liquidity and the significant influence of central banks, the pair is ideal for technical analysis, while the clear interest rate differentials make it a favorite for strategies such as carry trade. It is the dominant currency pair during Asian trading hours, especially in Asia.
GBP/USD – British pound against the US dollar (also known as “cable”)
Introduction:
This traditional pair gets its nickname from the first telegraph cables between London and New York. It is very popular among active traders, not least because of its higher volatility.
Key facts:
- Exchange rate: £1 = $1.355
- Share of trading volume: approx. 10%
-
Special features:
- More strongly influenced by political news (e.g., Brexit)
- Reacts directly to BoE and Fed interest rate decisions
- More volatility than EUR/USD – greater opportunities, but also greater risks
- Popular with day and swing traders
Why GBP/USD tends to be highly volatile when UK news is released:
GBP/USD can move quickly and sharply, especially when surprising news comes out of the UK. During periods of political stability, it often follows similar patterns to EUR/USD.
Why GBP/USD is so popular with active traders:
“Cable” attracts many short-term traders because it has higher average daily volatility than other majors. This characteristic makes it particularly attractive for day trading strategies that exploit rapid price movements. In addition, the proximity of London and New York trading hours ensures strong activity and volume during the European and US sessions. The combination of political sensitivity, technical responsiveness, and clear fundamental drivers creates market activity for experienced market participants.
AUD/USD – Australian dollar against US dollar (“Aussie”)
Introduction:
Australia is a commodity giant – and this is also reflected in its currency. The Aussie dollar is strongly correlated with the global commodity market and demand from China.
Key facts:
- Exchange rate: 1 A$ = 0.649
- Share of trading volume: approx. 5%
-
Special features:
- “Commodity currency” – especially gold and iron ore
- Strong link to the Chinese economy
- RBA interest rate policy vs. Fed decisive
- Popular with sentiment traders (“risk-on” phases)
The Australian dollar between commodity boom and crisis stress:
The AUD is sensitive to fluctuations in commodities and global risk sentiment. In growth phases with strong demand from China, the Aussie tends to strengthen. In times of crisis, it weakens.
Why AUD/USD is so popular with traders – focus on commodities, China and risk:
AUD/USD is particularly interesting for traders who pay attention to macroeconomic developments and commodity prices. The Aussie is considered a barometer for global growth and risk appetite, making it a preferred instrument in “risk-on” or “risk-off” phases. Its clear correlation with gold and iron ore prices, as well as with Chinese economic data, offers additional trading opportunities. Due to its often strong trends and regular reactions to news, the pair is well suited for swing trading and medium-term strategies.
USD/CAD – US dollar against Canadian dollar (“Loonie”)
Introduction:
The Canadian dollar is also a commodity currency, but here the focus is primarily on the price of oil. Close trade with the US makes this pair particularly dynamic.
Important facts:
- Exchange rate: 1 A$ = 0.649
- Share of trading volume: approx. 5%
-
Special features:
- “Commodity currency” – especially gold and iron ore
- Strong link to the Chinese economy
- RBA interest rate policy vs. Fed decisive
- Popular with sentiment traders (“risk-on” phases)
- Exchange rate: 1 US$ = 1.363 C$
- Share of trading volume: approx. 5%
-
Special features:
- Heavily dependent on the price of oil (WTI)
- High correlation with the US economy
- Decisions by the Bank of Canada (BoC) are important
- Ideal for news trading when oil or interest rate announcements are made
USD/CAD and oil: Why the Canadian dollar reacts to the price of crude oil:
USD/CAD often follows the fluctuations of the oil market. When the price of oil rises, the CAD usually appreciates and USD/CAD falls. When the price of oil falls, the opposite often happens. Ideal for traders who keep an eye on commodity markets. Past performance is not indicative of future performance.
USD/CAD: Macro favorite for news traders and swing strategists:
This pair impresses with its high transparency and strong reaction to fundamental factors such as oil prices and interest rate decisions. It is particularly popular with traders who closely follow macroeconomic developments, such as oil inventory data, geopolitical events, or BoC/Fed meetings. The proximity and economic interdependence of the US and Canada ensure regular trading impulses, clear movement patterns, and good technical interpretability. For experienced news and swing traders, USD/CAD thus offers numerous opportunities with what can be considered calculable risk.
Conclusion
It is not without reason that EUR/USD, USD/JPY, GBP/USD, AUD/USD, and USD/CAD are among the most traded currency pairs in the world. They offer traders a combination of high liquidity, transparent data, and stable trading hours. Their close links to interest rate policy, commodity prices and geopolitical developments make them particularly interesting for technical, fundamental and macroeconomic trading approaches.
If you want to learn about currency trading or deepen your strategic knowledge, these five majors provide a reliable foundation – whether for day trading, swing trading or long-term positioning.
Disclaimer: FOREX.com Australia is a Contracts for Difference (CFD) issuer and our products are traded off exchange. We do not offer direct ownership of the product and exposure to currency pairs or forex is available solely via Contracts for Difference (CFDs). This material relates to the underlying asset and does not constitute a recommendation or offer to trade.
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