- What are the most promising currency pairs in 2025?
- Which currency pairs to choose based on the investor profile?
- How to buy currency pairs in the UAE?
- Our 5 tips before buying currency pairs
- FAQ
- On the same topic
The currency pairs market is evolving rapidly, influenced by global economic shifts, monetary policies, and geopolitical events. Last year saw significant volatility and sharp movements in major pairs, drawing the attention of many investors. As interest continues to grow, more individuals are seeking the best opportunities to seize in 2025. This page provides an overview of the most promising assets, assessed by historical performance, market capitalization, growth outlook, volatility, and sector trends—serving as a valuable guide for both beginners and experienced investors.
Warning!
The information provided is for informational purposes only and does not constitute investment advice. Before investing in financial instruments like commodities or currencies, it is crucial to conduct your own thorough research, assess the associated risks, and act with caution. Please ensure all activities are in full compliance with the applicable regulations in the United Arab Emirates, as overseen by authorities like the Securities and Commodities Authority (SCA).
What are the most promising currency pairs in 2025?
Foreign exchange markets in 2025 continue to attract significant attention from investors in the United Arab Emirates, with numerous currency pairs showcasing strong liquidity, volatility, and macro-driven opportunities. The following comparison examines the ten most promising currency pairs of the year, taking into account factors such as their recent market dynamics, trading volume, price fluctuations, and correlation with major economic factors. These pairs stand out for their global trading impact, depth, and relevance to institutional as well as retail market participants.
| Pair | Volatility | Liquidity | Correlation (Gold/Oil/Equities) | Average Spread | Price Trend/Outlook |
|---|---|---|---|---|---|
| EUR/USD | Medium | Very High | Moderate (US indices, gold) | Low | Stable, gradual uptrend |
| USD/JPY | High | Very High | Strong (US yields, equities) | Low | Increasing volatility |
| GBP/USD | Medium | High | Moderate (UK indices, US data) | Low | Mild bullish bias |
| USD/CHF | Low | High | Strong (safe haven, gold) | Low | Range-bound |
| AUD/USD | High | High | Strong (commodities, China GDP) | Medium | Prone to swings |
| USD/CAD | Medium | High | Strong (oil prices, US indices) | Low | Correlated with oil |
| USD/TRY | Very High | Moderate | Weak (local risk factors) | High | Structural depreciation |
| USD/SGD | Low | Medium | Moderate (Asia growth) | Medium | Stable with policy bias |
| EUR/JPY | High | High | Strong (equities, yields) | Medium | Momentum-driven moves |
| NZD/USD | High | Medium | Strong (commodities, risk) | Medium | Sensitive to news flow |
EUR/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | 1.08 USD (rounded, recent average) | Indicates real-time market conditions. |
| End-of-year forecast | 1.12 USD (analyst consensus) | Aids in setting expectations for year-end levels. |
| Investor type | Institutions, active retail | Shows who typically trades this pair. |
| Daily trading volume | $1.1 trillion+ | Reflects liquidity and ease of entries/exits. |
| Volatility (30-day) | ~7% annualized | Higher volatility can create more trading potential. |
| Spread (pips) | 0.1-0.3 | Low costs attract more traders for active positions. |
| Liquidity tier | Top global (Tier-1) | Top-tier liquidity ensures tight pricing. |
| News sensitivity | High (Fed, ECB, global data) | News events impact price movement opportunities. |
| Correlation | Gold (moderate), S&P500 (inverse) | Helps risk manage cross-asset exposure. |
| Geographical relevance | Europe, US | Two largest economies drive macro significance. |
EUR/USD remains the most widely traded pair globally, benefiting from very deep liquidity and a tight bid/ask spread, which supports active trading strategies as well as longer-term positioning. Its price action is highly responsive to major monetary policy announcements from the Federal Reserve and European Central Bank.
The pair’s moderate correlation with gold and US equities allows investors to express macroeconomic views and hedge risk effectively. For traders in 2025, EUR/USD offers a balance of volatility and stability, making it a notable benchmark in currency portfolios.
USD/JPY
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | 160.50 JPY | Helps traders track trend strength and volatility. |
| End-of-year forecast | 163.80 JPY | Indicates analyst consensus for risk planning. |
| Investor type | Funds, institutions, carry traders | Shows strategies employed in this pair. |
| Daily trading volume | $890 billion | High volume allows for large position sizing. |
| Volatility (30-day) | ~10% annualized | Signals opportunity for large price swings. |
| Spread (pips) | 0.2-0.4 | Tight spreads improve cost efficiency. |
| Liquidity tier | Top global | Easier execution, even in volatile markets. |
| Correlation | US rates, Nikkei, US stocks | Macro factors strongly drive direction. |
| News sensitivity | BoJ and Fed policy, global risk events | Makes the pair attractive around major news. |
| Safe haven appeal | Yes (in risk-off), but less than USD/CHF | Useful for periods of global uncertainty. |
USD/JPY is often seen as a bellwether for global risk sentiment, reacting swiftly to US-Japan yield differentials and risk-on/risk-off flows. The pair exhibits high volatility and institutional interest, especially during major economic announcements.
It remains a strategic watch for active traders looking to capture moves influenced by central bank actions and shifting investor appetite for risk. The close link to interest rate changes and Japanese policy shifts offers repeated opportunities throughout 2025.
GBP/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | 1.27 USD | Basis for technical and macro analysis. |
| End-of-year forecast | 1.31 USD | Benchmarks market outlook for the pair. |
| Investor type | Retail, hedge funds | Reflects broad appeal across strategies. |
| Daily trading volume | $380 billion | Sufficient depth for significant trades. |
| Volatility (30-day) | ~8% annualized | Indicates active potential for swing trading. |
| Spread (pips) | 0.2-0.5 | Influences cost for high-frequency traders. |
| Liquidity tier | High | Good execution even during major UK events. |
| Correlation | UK/US data, FTSE, S&P500 | Lets traders use cross-asset arbitrage. |
| News sensitivity | UK CPI, GDP, US NFP, BoE/Fed decisions | Many catalysts create trading windows. |
| Regional significance | London/New York market hours | Activity peaks during these timeframes. |
GBP/USD combines strong daily trading volume and moderate volatility, making it attractive for both swing and trend traders in 2025. Movements are pronounced during UK and US data releases, often resulting in rapid price shifts.
News sensitivity offers frequent trading opportunities, with the pair frequently used to express views on UK economic policy or GBP-specific events. Its liquidity profile allows for both tactical and strategic engagement in a global setting.
USD/CHF
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | 0.90 CHF | Reflects relative strength of USD and CHF. |
| End-of-year forecast | 0.93 CHF | Baseline for annual positioning. |
| Investor type | Safe haven, conservative funds | Indicates defensive utility in portfolios. |
| Daily trading volume | $250 billion | Solid but lower than majors, still highly liquid. |
| Volatility (30-day) | ~5% annualized | Lower risk for conservative strategies. |
| Spread (pips) | 0.3-0.6 | Still competitive for most investors. |
| Liquidity tier | High | Confidence in execution in all sessions. |
| Correlation | Gold (high), EUR/USD, risk-off flows | Popular in portfolio hedging and events. |
| News sensitivity | SNB, safe haven flows, European stress | Predictable movements in crises. |
| Safe haven appeal | Top-tier | Widely used for capital preservation. |
USD/CHF appeals strongly to investors seeking safe-haven flows, as the Swiss franc is historically trusted in times of market turbulence. The pair is often less volatile, providing stability when risk assets become unpredictable.
Its strong correlation with gold and European macro themes adds to its profile, especially for those looking to hedge region-specific exposure or diversify a currency basket.
AUD/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | 0.68 USD | Key for tracking Australia’s trade-linked currency. |
| End-of-year forecast | 0.72 USD | Frames year-end positioning for AUD-focused trades. |
| Investor type | Commodity traders, global macro funds | Dynamic flows driven by risk and growth outlooks. |
| Daily trading volume | $150 billion | Healthy for active strategies and liquidity. |
| Volatility (30-day) | ~10% annualized | Suits fast-moving and leveraged investors. |
| Spread (pips) | 0.3-0.6 | Moderate costs for shorter-term positions. |
| Liquidity tier | High | Easy access during Asia-Pacific hours. |
| Correlation | Commodities (iron ore, coal), China GDP | Direct impact from global trade and China activity. |
| News sensitivity | RBA policies, China data, trade news | Multiple macro-drivers impact the pair. |
| Growth tie-in | Global risk appetite, EM flows | Offers a play on global economic cycles. |
AUD/USD is closely watched due to its sensitivity to commodity prices and global growth cycles, especially China’s economic health. Its high volatility and deep liquidity make it appealing for aggressive trading strategies.
The pair serves as a leading gauge for risk appetite and emerging market trends in 2025, providing ongoing opportunities for those following macroeconomic indicators and global trade shifts.
USD/CAD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | 1.32 CAD | Main benchmark for North American trade outlook. |
| End-of-year forecast | 1.36 CAD | Anchors future expectations for traders. |
| Investor type | Energy hedgers, macro funds | Shows impact of oil prices and Canadian exports. |
| Daily trading volume | $110 billion | Large enough for diverse investor participation. |
| Volatility (30-day) | ~7% annualized | Offers tactical trades linked to commodity moves. |
| Spread (pips) | 0.3-0.6 | Manageable costs for oil-sensitive positioning. |
| Liquidity tier | High | Strong in New York and Toronto hours. |
| Correlation | Oil prices, S&P/TSX, US data | Macro fundamentals shape pair’s trajectory. |
| News sensitivity | BOC, US jobs/oil inventory reports | News events trigger price movement windows. |
| Geographic significance | Canada, US | Broad international impact from North America. |
USD/CAD is strongly tied to oil prices and North American economic cycles, making it a core focus for traders responding to shifts in global energy supply and demand. Its ample liquidity and broad participation match both speculative and hedging needs.
The pair’s movements offer clues about underlying macro trends in energy and trade, providing regular opportunities based on economic releases and commodity market volatility.
USD/TRY
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | 33.10 TRY | Monitors value in an emerging market currency. |
| End-of-year forecast | 36.90 TRY | Projects further depreciation or stabilization. |
| Investor type | Carry traders, EM specialists | High risk/reward linked to monetary policy. |
| Daily trading volume | $18 billion | Limited, can amplify price swings. |
| Volatility (30-day) | ~15% annualized | High, supporting speculative or defensive trades. |
| Spread (pips) | 20-50 | High costs reflect risk profile. |
| Liquidity tier | Moderate | Potential for larger moves/slippage. |
| Correlation | Local rates, CDS, global EM risk | Useful for EM risk and country-specific events. |
| News sensitivity | Turkish CB, inflation, politics | Policy changes cause major pricing events. |
| Currency regime risks | High (interventions likely) | Must factor in government actions and headlines. |
USD/TRY is one of the most volatile and dynamic EM pairs, highly sensitive to local policy direction and headline risk. Wide spreads and quick directional moves can serve risk-tolerant traders or those hedging exposure to emerging markets.
For 2025, Turkish monetary and fiscal adjustments, as well as geopolitical events, may continue to drive pronounced trends in this pair.
USD/SGD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | 1.36 SGD | Measures Asia-centric dynamics, global trade links. |
| End-of-year forecast | 1.33 SGD | Useful for multinationals operating in Asia. |
| Investor type | Exporters, Asia-focused funds | Practical for currency risk management. |
| Daily trading volume | $80 billion | Ensures basic liquidity, less than majors. |
| Volatility (30-day) | ~3% annualized | Suits more conservative, yield-seeking investors. |
| Spread (pips) | 0.5-1.0 | Moderate; can expand during Asia session. |
| Liquidity tier | Medium | Less deep, manageable for moderate position sizes. |
| Correlation | Asian equity indices, China policy | Asia-Pacific macro events impact this pair. |
| News sensitivity | MAS policy, regional trade news | Key moves often tied to regulatory announcements. |
| Regional role | Anchors SG, regional flows | Main pair for Southeast Asia currency flows. |
USD/SGD offers a stable entry to Asia-Pacific FX exposure, gaining particular interest for corporate hedgers and funds managing regional currency baskets. While less volatile than majors, it remains sensitive to developments in regional trade and policy.
In 2025, the pair may see increased attention due to changes in Singapore’s monetary policy and Asia's economic rebound.
EUR/JPY
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | 173.30 JPY | Dynamic cross with both European and Asian drivers. |
| End-of-year forecast | 177.50 JPY | Informs traders of consensus for the period ahead. |
| Investor type | Macro, tacticians, quant funds | Broad range of market participants. |
| Daily trading volume | $90 billion | Sufficient for active trading, though less so than majors. |
| Volatility (30-day) | ~9% annualized | Drives opportunity in trending environments. |
| Spread (pips) | 0.6-1.2 | Slightly higher, but typical for cross rates. |
| Liquidity tier | Medium-High | Manage execution for moderate trade sizes. |
| Correlation | Equity/fixed income swings, risk cycles | Allows cross-asset and tactical setups. |
| News sensitivity | ECB, BoJ, European and Asian events | Significant macro events can shift direction. |
| Structural drivers | Rate differentials, sentiment shifts | Volatility surges during policy shifts. |
EUR/JPY is often chosen for its blend of European and Japanese macro influences, making it valuable for traders wanting to diversify from USD-centric pairs. The cross responds to both ECB/BoJ policy and broader risk themes, often trending on sentiment shifts.
Its active but manageable volatility can suit systematic and tactical traders looking for cross-region exposure in 2025.
NZD/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | 0.61 USD | Benchmarks performance of a smaller commodity-linked currency. |
| End-of-year forecast | 0.65 USD | Useful for those seeking higher-beta FX exposure. |
| Investor type | Risk-on traders, agricultural exporters | Follows global risk sentiment and agri-commodities. |
| Daily trading volume | $70 billion | Moderate, best suited for smaller positions. |
| Volatility (30-day) | ~11% annualized | Delivers opportunities for high-frequency trading. |
| Spread (pips) | 0.5-1.0 | Slightly higher cost is offset by volatility. |
| Liquidity tier | Medium | Lower depth requires trade size management. |
| Correlation | Dairy prices, commodity indices, AUD/USD | Facilitates thematic strategies and spread trades. |
| News sensitivity | RBNZ, global demand, weather events | Fast reaction to macro news and natural events. |
| Growth tie-in | Asia-Pacific risk, emerging market flows | Suits strategies linked to global growth. |
NZD/USD appeals to those seeking exposure to risk-on environments and commodity cycles, notably in agriculture and Asia-Pacific markets. Its higher volatility and correlation with global demand for commodities can boost trading opportunities.
In 2025, news around China, dairy exports, and global macro risk will likely create multiple windows of volatility in this interesting cross.
Compare the best Forex brokersCompareWhich currency pairs to choose based on the investor profile?
Choosing which assets to buy within the currency pairs category depends greatly on your investor profile, investing goals, and level of trading experience. Some currency pairs offer more stability or educational value for beginners, while others provide greater volatility and opportunity for advanced traders. Understanding your risk tolerance and personal objectives can help you select the most suitable currencies to start or expand your forex trading journey.
| Investor Profile | Recommended Assets |
|---|---|
| Beginner | Major currency pairs (e.g., EUR/USD, GBP/USD, USD/JPY) |
| Intermediate | Major and some minor pairs (e.g., AUD/USD, USD/CAD, EUR/CHF) |
| Experienced | Major, minor, and exotic pairs (e.g., USD/TRY, EUR/ZAR) |
Good to know
Beginners are encouraged to start trading currency pairs with a small, manageable budget, giving themselves room to learn and build confidence without taking on unnecessary risk.
How to buy currency pairs in the UAE?
Buying financial assets has become accessible to everyone thanks to online platforms that are designed to be both secure and user-friendly. Whether you are interested in stocks, cryptocurrencies, ETFs, or commodities, following a few simple steps will help you invest confidently.
| Step | What to Do |
|---|---|
| Choose a reliable exchange or broker | Select a regulated provider with a good reputation and strong security measures. |
| Create an account and verify identity | Sign up, then submit the necessary ID documents to comply with safety and legal standards. |
| Deposit funds (bank card or wire transfer) | Add money to your account using a method that suits you, such as bank transfer or card. |
| Purchase desired assets | Use the platform tools to buy the specific assets you want at current market prices. |
| Secure your storage | Move your assets to an external wallet (for crypto) or ensure shares/ETFs are in a safe account. |
Good to know
Profits from buying and selling assets in AE may be subject to taxation or reporting rules. It is important to keep track of all your transactions and consult the latest regulations to stay compliant.
Our 5 tips before buying currency pairs
Before investing in currency pairs, it is essential to follow established recommendations to protect your capital and increase your chances of success. The foreign exchange market can be volatile and complex, especially for beginners. Following proven tips—and making sure your broker is regulated by authorities such as the Securities and Commodities Authority (SCA) in the UAE—will help you make informed, secure investment decisions.
| Tip | Explanation |
|---|---|
| Choose a regulated broker | Make sure your broker is licensed by the SCA or other UAE authorities to ensure your protection. |
| Start with a demo account | Practise with virtual funds to understand the platform and trading strategies before using real money. |
| Set realistic limits | Always define loss and profit targets before trading to manage your risk effectively. |
| Learn the basics of forex | Take time to study how currency pairs work and what influences exchange rates. |
| Keep a record of all trades | Document your trading decisions and results to improve your strategy over time. |
FAQ
What is a currency pair and how does it work in 2025?
A currency pair is a trading instrument where you buy one currency and sell another at the same time, such as EUR/USD. In 2025, these pairs remain central to forex trading globally, with values that change constantly based on economic, political, and financial news.
How can I identify promising currency pairs to trade in 2025?
Look for currency pairs with strong economic trends, consistent volatility, or currencies backed by stable economies. Monitoring major economic updates and market calendars can help spot pairs with higher trading potential, but always remember that past performance does not guarantee future results.
What strategy is recommended for investing in currency pairs in 2025?
Many investors in 2025 focus on risk management and technical analysis. Using stop-losses, managing position size, and diversifying across different pairs can help reduce risk, while regular review of charts and news can support more informed trading decisions.
How do I manage risks when trading currency pairs?
Successful traders set clear limits using tools like stop-loss orders to control potential losses. It’s crucial to only trade with money you can afford to lose and to keep up to date with market trends and international events that might affect currencies.
Is the currency pairs market regulated in the UAE in 2025?
Yes, in 2025 the UAE has clear regulations for forex trading. It is important to choose brokers regulated by local authorities like the Securities and Commodities Authority (SCA) to ensure your investments are protected by regional laws and oversight.
What is a currency pair and how does it work in 2025?
A currency pair is a trading instrument where you buy one currency and sell another at the same time, such as EUR/USD. In 2025, these pairs remain central to forex trading globally, with values that change constantly based on economic, political, and financial news.
How can I identify promising currency pairs to trade in 2025?
Look for currency pairs with strong economic trends, consistent volatility, or currencies backed by stable economies. Monitoring major economic updates and market calendars can help spot pairs with higher trading potential, but always remember that past performance does not guarantee future results.
What strategy is recommended for investing in currency pairs in 2025?
Many investors in 2025 focus on risk management and technical analysis. Using stop-losses, managing position size, and diversifying across different pairs can help reduce risk, while regular review of charts and news can support more informed trading decisions.
How do I manage risks when trading currency pairs?
Successful traders set clear limits using tools like stop-loss orders to control potential losses. It’s crucial to only trade with money you can afford to lose and to keep up to date with market trends and international events that might affect currencies.
Is the currency pairs market regulated in the UAE in 2025?
Yes, in 2025 the UAE has clear regulations for forex trading. It is important to choose brokers regulated by local authorities like the Securities and Commodities Authority (SCA) to ensure your investments are protected by regional laws and oversight.
On the same topic
