Major Forex Currency Pairs Explained (2025 Trends)

The forex market operates through currency pairs, where traders exchange one currency for another. Understanding what forex currency pairs are is fundamental for anyone entering the world of foreign exchange trading.

A currency pair represents the relative value between two currencies, with the first currency being the base currency and the second being the quote currency.

In this article, we will get you through the major currency pairs and their types. Without further ado, let’s dive into it.

A currency pair in forex trading is a price quote of the exchange rate for two different currencies. It shows how much of one currency (the quote currency) you need to spend to buy one unit of another currency (the base currency).

Let’s understand it with an example:

Take the currency pair EUR/USD = 1.10.

• EUR (Euro) is the base currency
• USD (U.S. Dollar) is the quote currency
• This means 1 Euro = 1.10 U.S. Dollars
  

So, if you want to buy 1 Euro, you need to pay 1.10 U.S. Dollars. See, it is as simple as that. Also, if you are worrying about paying higher commissions and spreads, OnsaFX charges zero commission and a low spread. In addition, learn more chart patterns to practice trading.

The 8 major forex currency pairs dominate global trading volume and include the most liquid instruments in the market. These major currency pairs in forex represent the world’s strongest economies and account for the majority of daily trading volume.

The 7 major currency pairs most commonly referenced include:

• EUR/USD (Euro/US Dollar)
• GBP/USD (British Pound/US Dollar)
• USD/JPY (US Dollar/Japanese Yen)
• USD/CHF (US Dollar/Swiss Franc)
• AUD/USD (Australian Dollar/US Dollar)
• USD/CAD (US Dollar/Canadian Dollar)
• NZD/USD (New Zealand Dollar/US Dollar)

Forex minor currency pairs, also known as cross currency pairs, don’t include the US Dollar as either the base or quote currency. These minor currency pairs in forex offer alternative trading opportunities but require different trading considerations compared to major pairs.

Popular Minor Pairs and Their Characteristics:

• EUR/GBP: Known for tight ranges and technical trading opportunities
• EUR/JPY: Offers good volatility during European and Asian sessions
• GBP/JPY: Higher volatility pair popular among day traders
• AUD/JPY: Sensitive to risk sentiment and commodity prices
• EUR/CHF: Often range-bound with central bank intervention risks

Trading Advantages of Minor Pairs:

• Diversification opportunities: Reduces USD exposure in trading portfolios
• Unique technical patterns: Often show clearer support/resistance levels
• Regional focus trading: Allows traders to specialize in specific economic regions
• Less crowded markets: Fewer algorithmic traders competing for the same moves
• Interest rate differentials: Can offer attractive carry trade opportunities

Trading Challenges:

• Lower liquidity: Spreads typically 2-5 pips wider than major pairs
• Higher transaction costs: More expensive to trade frequently
• Limited trading hours: Best liquidity only during specific regional sessions
• Complex analysis: Requires understanding three currencies simultaneously
• News sensitivity: React unpredictably to economic data from multiple countries

The best forex currency pairs for beginners typically include three major pairs that offer the ideal combination of low costs, predictability, and learning opportunities.

EUR/USD stands out as the perfect starting point for beginners due to its exceptional trading conditions. This pair accounts for 25% of all forex trading volume as of October 2024, making it the most liquid currency pair in the world.

• Lowest spreads: Typically 0.1-0.3 pips with good brokers, meaning minimal trading costs
• Highest liquidity: Orders execute quickly at expected prices with smooth movements
• Abundant resources: Endless educational materials and analysis available
• Predictable patterns: Follows technical analysis more reliably than exotic pairs
• No surprise gaps: Less prone to weekend gaps that can hurt new traders

GBP/USD offers predictable price movements that help beginners understand market dynamics and develop their trading skills effectively.

• Clear trending behavior: Moves in trends lasting weeks or months
• Logical news response: Reacts predictably to UK and US economic data
• Visible support/resistance: Shows clear levels that beginners can learn to identify
• Optimal trading hours: Most active during London-New York overlap (8 AM – 12 PM EST)
• Balanced volatility: Provides opportunities without causing panic

USD/JPY provides stable trading conditions that allow beginners to focus on learning without worrying about erratic price movements.

• Smooth trending movements: Less choppy behavior compared to other pairs
• Interest rate sensitivity: Clear relationship to US-Japan rate differentials
• Lower weekend gaps: Usually opens Monday close to Friday’s close
• Long-term trends: Easier for beginners to follow and understand
• Stable economic drivers: Well-documented US-Japan economic relationship

Like USD/TRY or EUR/ZAR can move 200-300 pips within minutes due to political developments. Cross-currency pairs such as EUR/GBP involve three currencies indirectly, adding complexity. Commodity currencies during news events can show extreme volatility that overwhelms new traders.

Start with EUR/USD for the first month to master basic trading mechanics, then add GBP/USD to practice trend following strategies. Include USD/JPY third to understand interest rate impacts on currency movements. This systematic approach builds confidence and skills gradually rather than overwhelming beginners with too many variables.

Best Pairs to Trade in the London Session: The London forex currency pairs see increased activity during European market hours, with EUR/USD and GBP/USD showing the highest volume.

New York Session Forex Currency Pairs: New York forex currency pairs experience peak volatility when the US market opens, particularly affecting USD-based pairs.

Tokyo Session Forex Currency Pairs: Tokyo forex currency pairs, especially USD/JPY and other Asian crosses, show increased movement during Asian trading hours.

Sydney Session Forex Currency Pairs: Sydney forex currency pairs, particularly AUD/USD and NZD/USD, become more active during Pacific market hours.

Understanding forex currency pairs forms the foundation of successful trading. From major currency pairs that offer stability and liquidity to exotic pairs providing unique opportunities, each category serves different trading objectives. Whether you’re interested in the most stable forex currency pairs for conservative strategies or high-volatility options for aggressive trading, proper education and risk management remain paramount.

The forex market’s complexity requires continuous learning, and staying updated with currency pairs correlation, market sessions, and regulatory changes ensures trading success. As markets evolve in 2025, traders who understand these fundamental concepts will be better positioned to navigate the dynamic world of forex trading.