- What are the most promising currency pairs in 2025?
- Which Currency Pairs to Choose Based on Your Investor Profile?
- How to buy currency pairs in Australia?
- Our 5 tips before buying currency pairs
- FAQ
The currency pairs market continues to evolve rapidly in 2025, driven by changing economic policies, global events, and ongoing volatility. Last year saw significant movements as central banks adjusted interest rates and geopolitical developments influenced exchange rates. With many investors eager to uncover the best opportunities in the new year, this page provides an overview of the most promising assets, drawing on factors such as historical performance, market capitalisation, growth potential, volatility, and sector trends. This resource serves as a practical guide for both beginners and experienced investors seeking clarity in a dynamic market.
Attention!
The content on this page is provided for general informational purposes only and does not constitute financial advice. Before investing in financial products, you should conduct your own research, assess the risks, and consider seeking advice from a licensed Australian financial adviser. Always act with caution and be mindful of relevant Australian regulations. Topic Analysis: It looks like you're after a detailed stock analysis. Just to clarify, 'currency pairs' are instruments for forex (foreign exchange) trading, not a specific company's stock. They involve trading one currency against another, like the Aussie dollar versus the US dollar (AUD/USD). If you're looking for an analysis of a particular company's stock, could you please provide: - The company name or its ASX ticker symbol (e.g., 'BHP' for BHP Group Limited) - The stock exchange it's listed on (e.g., the Australian Securities Exchange - ASX) Alternatively, if you're keen on a forex trading analysis, I can provide a rundown on the most popular currency pairs, their key features, and current market conditions. The major pairs include: 1. EUR/USD (Euro/US Dollar) - 24% of daily volume 2. USD/JPY (US Dollar/Japanese Yen) - 13.2% of daily volume 3. GBP/USD (British Pound/US Dollar) - 9.6% of daily volume 4. AUD/USD (Australian Dollar/US Dollar) - 5.4% of daily volume 5. USD/CAD (US Dollar/Canadian Dollar) - 4.4% of daily volume Please let me know which specific stock you'd like analysed, and I'll prepare the comprehensive report you've requested.
What are the most promising currency pairs in 2025?
The foreign exchange market is highly dynamic in 2025, influenced by macroeconomic policies and global events. For Australian investors, understanding the top-performing and most liquid currency pairs helps identify strong candidates to follow. Below is a comparison of the ten most notable currency pairs, focusing on key metrics such as volatility, liquidity, asset correlation, average spreads, and growth outlook.
| Pair | Volatility | Liquidity | Correlation with other assets | Average spread | Growth outlook |
|---|---|---|---|---|---|
| EUR/USD | Low | Very high | High with risk assets | Low | Stable/moderate |
| USD/JPY | Medium | Very high | Yen safe-haven | Low | Opportunity driven |
| GBP/USD | Medium | High | Sensitive to UK/US rates | Low-medium | Potential swings |
| AUD/USD | Medium | High | Linked to commodities | Medium | Cyclical prospects |
| USD/CAD | Medium | High | Oil price correlation | Medium | Commodity-dependent |
| USD/CHF | Low | High | Safe-haven characteristics | Low | Defensive outlook |
| EUR/GBP | Low | Medium | Europe and Brexit exposures | Low | Stable/moderate |
| NZD/USD | Medium | Medium | Commodities and risk assets | Medium | Volatile cycles |
| EUR/JPY | Medium | High | Euro/yield spreads | Medium | Tactical swings |
| USD/SGD | Low | Medium | Asia macro links | Low | Regional stability |
EUR/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | ~1.09 USD | Reference point for global forex and risk sentiment |
| End-of-year forecast | 1.10–1.14 USD | Indicates modest movement, reflecting rate outlook |
| Investor type | Conservative to balanced | Favors stable return seekers and institutional flows |
| Market capitalization | Largest in forex | High liquidity ensures tighter spreads and efficiency |
| Trading volume | Highest daily turnover globally | Easy entry/exit with little slippage |
| Volatility | Low | Lower short-term risk, steady moves |
| Liquidity | Very high | Handles large volumes without major price impact |
| Correlation | Moves with risk assets, e.g. indices | Useful for hedging against other exposures |
| Average spread | 0.1–0.5 pips | Keeps trading costs to a minimum |
| Macroeconomic sensitivity | Sensitive to US and European data | Clear drivers aid predictable reactions |
EUR/USD remains a benchmark for global investors, exhibiting stability and immense liquidity. Its tight spreads and high trading volumes support efficient trading, making it a central reference for portfolio construction, hedging, and risk management in a volatile macro environment.
USD/JPY
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | ~155.00 JPY per USD | Key rate for US dollar strength and Asia sentiment |
| End-of-year forecast | 150–158 JPY per USD | Expected volatility around geopolitical or BoJ policy |
| Investor type | Defensive, tactical | Popular among those hedging or seeking carry trade |
| Market capitalization | Very high | Absorbs large institutional trades |
| Trading volume | Second highest globally | Ensures tight execution and low spreads |
| Volatility | Medium | Opportunities in swings during risk events |
| Liquidity | Very high | Entry and exit flexibility, even during volatility |
| Correlation | Yen as safe-haven during risk-off events | Diversifies against equity drawdowns |
| Average spread | 0.2–0.6 pips | Efficient trading for all investor types |
| Macroeconomic sensitivity | Highly responsive to U.S./Japan policy moves | Central bank decisions can trigger short-term trends |
USD/JPY attracts attention for its role as a global risk barometer and a popular vehicle for tactical trades. Its liquidity and quick response to policy statements make it particularly noteworthy during uncertain times or sudden market events.
GBP/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | ~1.27 USD | Barometer for UK economic health and sentiment |
| End-of-year forecast | 1.25–1.32 USD | Moderate volatility potential amid UK and US events |
| Investor type | Moderate to speculative | Favoured by traders seeking wider daily ranges |
| Market capitalization | High | Small spreads help cost efficiency |
| Trading volume | Third largest globally | Active markets for round-the-clock trading |
| Volatility | Medium | Moves can be amplified by data or politics |
| Liquidity | High | Smooth execution even in volatile sessions |
| Correlation | Moves with both European and US macro changes | Suits those interested in cross-Atlantic developments |
| Average spread | 0.4–1.2 pips | Reasonable for most strategies |
| Macroeconomic sensitivity | Data-driven, reacts to central bank actions | Predictable response to scheduled news |
GBP/USD combines solid liquidity with moderate swings, making it appealing for those navigating news-driven environments. Its activity increases during major economic releases, providing ample opportunity for both short-term and longer-horizon approaches.
AUD/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | ~0.66 USD | Main measure for Australian dollar in global trade |
| End-of-year forecast | 0.64–0.70 USD | Projected to follow macro and commodity cycles |
| Investor type | Cyclical, commodity-linked | Attractive for following resource market themes |
| Market capitalization | High | Provides comfort for AU-based and global traders |
| Trading volume | High | Active liquidity in both local and global hours |
| Volatility | Medium | Susceptible to commodity prices and RBA policy |
| Liquidity | High | Supports large order sizes with minimal slippage |
| Correlation | Tied to metals, risk-on/off sentiment | Useful for those managing commodity exposure |
| Average spread | 0.5–1.3 pips | Competitive; often better during Asia session |
| Macroeconomic sensitivity | Driven by China, commodities, and RBA | Australia’s export profile impacts price action |
AUD/USD is popular among Australian investors as it captures local-economic and global-commodity trends. Movements in the pair are closely watched as indicators of both domestic and external economic momentum, especially in resource-centric themes.
USD/CAD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | ~1.36 CAD per USD | Tracks USD strength versus resource-rich Canada |
| End-of-year forecast | 1.34–1.39 CAD per USD | Subject to oil price and monetary policy shifts |
| Investor type | Cyclical, commodity-linked | Suitable for those active in energy sector trends |
| Market capitalization | High | Handles large trade volumes reliably |
| Trading volume | High | Top-tier liquidity supports flexible trading |
| Volatility | Medium | Can spike with oil price volatility |
| Liquidity | High | Minimal execution delays even at high volumes |
| Correlation | Closely aligned with oil markets | Useful hedge for energy exposure |
| Average spread | 0.7–1.5 pips | Slightly higher during volatile periods |
| Macroeconomic sensitivity | Oil and US/Canada data are key drivers | Trading opportunities around data releases |
USD/CAD reflects the intersection of currency and commodities, especially for those following global energy movements. With robust liquidity and a clear link to oil prices, it stands out during major commodity market shifts.
USD/CHF
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | 0.89 CHF per USD | Monitors USD strength vs the Swiss franc |
| End-of-year forecast | 0.88–0.92 CHF per USD | Low volatility with a defensive bias |
| Investor type | Conservative, hedging | Attracts risk-averse looking for a safe haven |
| Market capitalization | High | Provides ample liquidity for core strategies |
| Trading volume | High | Strong execution at all times |
| Volatility | Low | Less prone to rapid and unexpected changes |
| Liquidity | High | Ensures cost-effectiveness in scaling trades |
| Correlation | Inverse to global risk appetite | Adds portfolio protection during stress |
| Average spread | 0.2–0.7 pips | Keeps total trading costs very low |
| Macroeconomic sensitivity | Reactive to global events and Swiss policy | Serves as a stability anchor in portfolios |
USD/CHF is renowned as a safe-haven choice, appealing to those seeking stability in times of uncertainty. Its risk-off behavior and consistent liquidity make it a functional addition to a diversified approach.
EUR/GBP
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | ~0.85 GBP per EUR | Reflects Euro-British Pound dynamics |
| End-of-year forecast | 0.84–0.87 GBP per EUR | Driven by Eurozone/UK growth divergence |
| Investor type | Conservative to balanced | For those needing a European market focus |
| Market capitalization | Medium-high | Sufficient for reliable execution |
| Trading volume | Medium-high | Liquid during European trading hours |
| Volatility | Low | Ample stability except during major news |
| Liquidity | Medium-high | Reliable execution broadly across sessions |
| Correlation | Sensitive to Brexit outcomes and rate changes | Provides insight into EUR and GBP strength |
| Average spread | 0.4–0.9 pips | Favourable for most positional traders |
| Macroeconomic sensitivity | European and UK data in focus | Useful for continental risk or opportunity exposure |
EUR/GBP offers stability and an effective way to monitor diverging policies between Europe and the UK. This pair is particularly useful for those looking for exposure outside the USD and to observe relative regional strengths.
NZD/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | 0.61 USD | Benchmarks New Zealand’s economic health |
| End-of-year forecast | 0.59–0.65 USD | Prone to cycles and external shocks |
| Investor type | Volatility seekers, macro traders | Popular for trading major data and risk cycles |
| Market capitalization | Medium | Adequate for individual and institutional trades |
| Trading volume | Medium | Lower during Asia-Pacific mid-session |
| Volatility | Medium | Impacted by global risk moves and commodity news |
| Liquidity | Medium | Effective but can widen during surprises |
| Correlation | Ties to risk appetite, global growth | Favours cyclical opportunity seekers |
| Average spread | 0.9–1.4 pips | Manageable, but check during high volatility |
| Macroeconomic sensitivity | High, on China/global data | China’s performance notably affects the pair |
NZD/USD is often traded by those seeking both opportunity and volatility, with pronounced swings during global events. Its cyclical characteristics and dependence on wider economic health offer a variety of tactical options.
EUR/JPY
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | 170.00 JPY per EUR | Reflects Eurozone and Japan macro landscape |
| End-of-year forecast | 167–172 JPY per EUR | Shaped by monetary divergence and capital flows |
| Investor type | Active, event-driven | Favours those tracking central bank actions |
| Market capitalization | High | Used frequently by institutional players |
| Trading volume | High | Active trading in both Europe and Asia |
| Volatility | Medium | Variability at major macro event windows |
| Liquidity | High | Consistent, supports rapid execution |
| Correlation | Reacts to spreads and risk appetite | Beneficial for trading news or yield decisions |
| Average spread | 0.7–1.3 pips | Acceptable cost for high-frequency traders |
| Macroeconomic sensitivity | Dually sensitive to Eurozone and Japan data | Events in both regions move this pair |
EUR/JPY stands out for its dual exposure to two of the world’s largest economies, offering a distinct perspective during periods of policy divergence. This makes the pair attractive for those following cross-regional macroeconomic strategies.
USD/SGD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | 1.35 SGD per USD | Tracks US dollar against a stable Asian currency |
| End-of-year forecast | 1.33–1.37 SGD per USD | Limited volatility expected unless major news |
| Investor type | Conservative, regionally focused | Used for exposure to stable Asian macro trends |
| Market capitalization | Medium | Sufficient depth for most order sizes |
| Trading volume | Medium | Robust for an Asian non-major pair |
| Volatility | Low | Reduced risk of severe short-term swings |
| Liquidity | Medium | Reliable during Asian market hours |
| Correlation | Sensitive to Asian indicators | Allows Asia-centric positioning and risk mitigation |
| Average spread | 0.6–1.1 pips | Efficient for cross-border business and hedging |
| Macroeconomic sensitivity | Moves with Asian growth and Fed policy | Good barometer of broader regional stability |
USD/SGD closely follows Asian macroeconomic health, making it useful for those who wish to diversify outside traditional majors. Its low volatility and strong regional focus help reduce portfolio risk linked to wider market shocks.
Compare the best Forex brokersCompareWhich Currency Pairs to Choose Based on Your Investor Profile?
Choosing which assets to buy within the currency pairs category depends on your investor profile, financial goals, and experience level. Beginners may prefer stability and simplicity, while more experienced investors might look for higher volatility or diversification. Understanding your own approach will help you focus on the currency pairs best suited to your needs and risk tolerance.
| Investor Profile | Recommended Assets |
|---|---|
| Beginner | Major currency pairs like EUR/USD, USD/JPY, and AUD/USD—these are highly liquid and tend to be lower risk. |
| Intermediate | Major pairs plus selected cross-currency pairs such as EUR/GBP or AUD/NZD for moderate risk and variety. |
| Experienced | Major, minor, and exotic currency pairs for higher volatility, arbitrage, or advanced strategy execution. |
Good to know
If you’re just starting out, consider trading with a small budget first. This allows you to get hands-on experience and learn how the currency pairs market works—without taking excessive risks.
How to buy currency pairs in Australia?
Buying financial assets, including stocks, cryptocurrencies, ETFs, commodities, or currency pairs, is now accessible to everyone. Secure, regulated platforms in Australia make it simple for beginners to get started, with intuitive interfaces and robust protections for your personal and financial information.
| Step | What to do |
|---|---|
| Choose a reliable exchange or broker | Select a regulated provider with a good reputation and support for your asset type. |
| Create an account and verify identity | Complete online registration and submit required ID documents to meet Australian regulations. |
| Deposit funds (bank card or wire transfer) | Add AUD to your account using a bank card, bank transfer, or other accepted method. |
| Purchase desired assets | Place an order to buy the asset (such as shares, ETFs, or currency pairs) via the chosen platform. |
| Secure their storage | For shares and ETFs, hold them in your securities account. For cryptocurrencies, consider moving them to a private wallet. |
Good to know
Any gains from selling financial assets, including currency pairs, may be taxable in Australia. It is important to keep clear records of all transactions for your tax reporting obligations.
Our 5 tips before buying currency pairs
Before investing in currency pairs, it’s important to adopt a thoughtful and careful approach, as this market can be both dynamic and complex. Following key precautions can help you minimise risks and make smarter decisions. Understanding the Australian legal framework—regulated by bodies like ASIC and AUSTRAC—also ensures you are trading in a fair and secure environment.
| Tip | Explanation |
|---|---|
| Learn the basics | Take time to understand how currency pairs work, including basic forex concepts and market drivers. |
| Choose a regulated broker | Always verify your broker is licensed by the Australian Securities and Investments Commission (ASIC). |
| Start with a demo account | Practise with virtual funds to gain experience and test your strategies without risking real money. |
| Set a clear budget | Decide in advance how much you are willing to invest and never risk more than you can afford to lose. |
| Monitor market news and updates | Stay informed on global economic news, central bank decisions, and events that can affect currency prices. |
FAQ
What is the main opportunity for trading currency pairs in 2025?
The major opportunity in trading currency pairs this year lies in global economic shifts and movements in interest rates. Dynamic global conditions may cause currencies to fluctuate, offering more chances for both short-term and long-term strategies.
How can I tell if a currency pair is promising for investment?
A promising currency pair typically shows high trading volume, liquidity, and links to major economic regions. Watching for clear trends, stable governments, and upcoming economic events can help you identify pairs worth monitoring.
What strategy should I adopt to invest in currency pairs in 2025?
It’s wise to start with a simple strategy, such as following economic news or major central bank decisions. Many investors in Australia look for consistent market trends while managing risk and avoiding overly complex tactics at first.
Are currency pairs investments risky?
All investments involve some risk, and currency pairs are no exception. Their prices can move quickly because of economic news or sudden political changes. Understanding and managing your risk level before investing is essential.
Where can I find information to make informed decisions about currency pairs?
Reliable information can be found through official central bank resources, reputable financial news sites, and educational material provided by Australia’s financial regulators. These sources can help you stay updated without relying on speculation.
What is the main opportunity for trading currency pairs in 2025?
The major opportunity in trading currency pairs this year lies in global economic shifts and movements in interest rates. Dynamic global conditions may cause currencies to fluctuate, offering more chances for both short-term and long-term strategies.
How can I tell if a currency pair is promising for investment?
A promising currency pair typically shows high trading volume, liquidity, and links to major economic regions. Watching for clear trends, stable governments, and upcoming economic events can help you identify pairs worth monitoring.
What strategy should I adopt to invest in currency pairs in 2025?
It’s wise to start with a simple strategy, such as following economic news or major central bank decisions. Many investors in Australia look for consistent market trends while managing risk and avoiding overly complex tactics at first.
Are currency pairs investments risky?
All investments involve some risk, and currency pairs are no exception. Their prices can move quickly because of economic news or sudden political changes. Understanding and managing your risk level before investing is essential.
Where can I find information to make informed decisions about currency pairs?
Reliable information can be found through official central bank resources, reputable financial news sites, and educational material provided by Australia’s financial regulators. These sources can help you stay updated without relying on speculation.
