Top 5 Currency Pairs for Emerging Markets in 2025

When you trade in the foreign exchange (Forex) market, you’re always dealing with currency pairs. That’s because when you buy one currency, you’re simultaneously selling another. It’s a bit like a seesaw—if one side goes up, the other goes down.

Let’s look at a simple example: say you decide to sell (or “go short” on) the EUR/USD pair. That means you’re betting that the Euro will weaken against the US dollar, so you’re selling Euros while buying US dollars at the same time.

Now, you might be wondering: which currency pairs are the best to trade? In this article, we’ll break that down and help you discover the top pairs that could fit your trading style and goals.

What is Forex Currency Trading?

Forex trading – or foreign exchange trading – is all about buying and selling currencies in pairs. To be able to buy and sell currencies effectively, you need to have information about how much each currency in a pair is worth about the other. This relationship is what defines a currency pair. A currency pair consists of two currency abbreviations, followed by the value of the “base” currency (the first listed), which is expressed in the “quote” currency (the second listed).

There is always an international code that specifies the setup of Forex pairs. For example, a quote of EUR/USD 1.23 means that one Euro is worth USD$1.23. Here, the base currency is the Euro (EUR), and the counter currency is the US dollar. 

Major Currency Pairs in the World

The foreign exchange (Forex) market is the largest financial market on the planet, with daily transactions worth trillions of dollars. While there are about 180 official currencies worldwide, only a handful dominate the global FX scene.

Most of the daily trading volume is driven by just a few key currencies. These are grouped into five main categories:

1. Major Currency Pairs

These are the most widely traded pairs in the Forex trading online market and make up roughly 85% of all global FX transactions. They always include the US dollar paired with another major currency like the euro, yen, pound, or Australian dollar.

Examples include:

• EUR/USD (Euro/US Dollar)
• USD/JPY (US Dollar/Japanese Yen)
• GBP/USD (British Pound/US Dollar)
• 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)

These pairs tend to be more stable and liquid due to the size and economic strength of the countries involved.

2. Cross-Currency Pairs

Also known as “crosses,” these are currency pairs that don’t involve the US dollar. While majors always feature the dollar on one side, crosses skip it altogether.

For instance:

• EUR/JPY (Euro/Japanese Yen)
• GBP/JPY (British Pound/Japanese Yen)

These pairs are sometimes referred to as minor pairs and can still offer good liquidity, though not quite at the level of the majors.

3. Exotic Pairs

Exotic currency pairs feature one major currency paired with a currency from a smaller or emerging economy. They are less liquid, more volatile, and can come with wider spreads.

Examples include:

• USD/THB (US Dollar/Thai Baht)
• USD/TRY (US Dollar/Turkish Lira)
• USD/ZAR (US Dollar/South African Rand)
• USD/SEK (US Dollar/Swedish Krona)
• USD/DKK (US Dollar/Danish Krone)

Traders often approach these pairs with caution due to their unpredictability and lower trading volume.

4. Commodity Currencies

Some currencies are closely tied to the export of natural resources, and they tend to move in line with the prices of those commodities. These are often called “commodity currencies.”

Key players in this category include:

• AUD (Australian Dollar – linked to iron ore and gold)
• NZD (New Zealand Dollar – linked to dairy and agriculture)
• CAD (Canadian Dollar – heavily influenced by oil prices)

Whether you’re trading Forex, commodities, or CFDs, keeping an eye on these correlations can help you better understand and anticipate market moves.

5. Safe Haven Currencies

Although not an official grouping, certain currencies are known as “safe havens” because they tend to hold their value during times of economic uncertainty or market turbulence.

Common safe haven currencies include:

• USD (US Dollar)
• JPY (Japanese Yen)
• CHF (Swiss Franc)
• EUR (Euro)
• GBP (British Pound)

Much like gold and other precious metals, these currencies attract more interest when markets are shaky. Traders often flock to them for stability when risk is high.

Top Forex Pairs to Trade: Currency Pair Analysis 

If you’re thinking about diving into the world of Forex trading, understanding which currency pairs to focus on is a great place to start. Let’s break down a few of the most popular pairs and what makes each one worth considering.

EUR/USD – The Classic Favourite

EUR/USD is arguably the most well-known and widely traded pair in the Forex market. One of its biggest advantages is its low spread, which means lower trading costs. It’s also generally less volatile, making it a solid choice for traders who prefer a more stable, lower-risk approach.

Another bonus? There’s no shortage of market analysis, forecasts, and educational content focused on this pair, which makes it easier for beginners to learn the ropes and avoid common mistakes.

GBP/USD – High Potential, High Risk

The British Pound against the US Dollar is a pair known for its potential to produce sizable profits, thanks to its frequent and sometimes sharp price movements. However, that also means more risk, so it might not be the best option for conservative traders.

That said, many experienced Forex traders favour GBP/USD because it offers opportunities for big moves, especially if you keep an eye on economic events and political news from the UK and US. Just make sure you’re prepared for a bumpy ride.

USD/JPY – Smooth Trends, Solid Spreads

Another top contender is the USD/JPY. It typically has a low spread and tends to move in smoother, more predictable trends than some of the more volatile pairs. This makes it appealing for traders looking for steady opportunities without wild fluctuations.

With strong economies backing both currencies, USD/JPY remains a staple in many traders’ portfolios.

Spreads and Why They Matter

While major currency pairs generally come with tighter spreads, GBP/USD can be an exception due to its volatility. In trading, a lower spread is usually better—it means you’re paying less in fees. Experts often recommend sticking to pairs with spreads between 0 and 3 pips. Anything above 6 pips could be costly and may eat into your profits, especially if you’re making frequent trades.

That doesn’t mean you should completely avoid pairs with wider spreads, but it does mean you need a solid risk management strategy in place to help protect your capital.

Final Thoughts

At the end of the day, the best Forex pair for you to trade is the one you understand the most. Staying informed about economic events and trends is key, and using tools like a Forex trading calendar can help you anticipate market movements tied to important announcements.

With the global economy so interconnected, currency values are constantly shifting in response to world events. That’s why it’s essential to study the Forex market carefully before investing your money.

And here’s a smart tip for anyone getting started: practice first with a demo account. It’s a great way to test out different pairs, strategies, and market conditions using virtual funds, so you can gain experience without risking real money.