10 Most Popular Forex Pairs You Should Know As A Trader

When trading Forex knowing the right currency pairs can make all the difference between success and failure.

Whether you’re a beginner looking to learn the ropes or a seasoned trader refining your strategy — this guide covers the 10 most popular forex pairs to help you make informed decisions.

Each pair comes with its own unique characteristics, trading sessions, and risk factors, and understanding these nuances will give you an edge in the market.

In the following sections we’ll explore the key aspects of these trading pairs and what makes them the top choices for traders worldwide.

EUR/USD

As the world’s most traded currency pair EUR/USD reflects the deep economic ties between the Eurozone and the United States. It offers unmatched liquidity which makes it favorite among both institutional and retail traders.

The dynamics of this pair often revolve around macroeconomic indicators such as interest rate decisions from the European Central Bank (ECB) and the Federal Reserve (Fed) and also other broader geopolitical events.

Additionally, these currencies being used as global reserves help to make the exchange rate between the Euro and the U.S. Dollar more stable and predictable..

• Minimum spreads: 0.1-0.8 pips, depending on market conditions.
• Most active session: London and New York overlap.

USD/JPY

USD/JPY shows the strong economic connection between the United States (America) and Japan.

It often serves as a key indicator of global risk sentiment as the Japanese yen tends to act as a safe-haven currency during periods of market instability or uncertainty.

USD/JPY forex pair is heavily influenced by the Bank of Japan (BoJ) monetary policy and changes in US interest rates.

Forex traders closely monitor the Federal Reserve’s actions and watch any attempts by Japan to weaken/strengthen yen.

• Minimum spreads: 0.3-1.0 pips.
• Most active session: Tokyo.

GBP/USD

You might know GBP/USD by its nickname “Cable” It represents the economic link between the UK and the US.

It’s a historically volatile currency pair and is heavily influenced by political developments in the UK such as Brexit in recent years.

Cable’s sensitivity to both Bank of England (BoE) and Federal Reserve policies makes it a high-risk & high-reward trading pair.

Inflation, employment numbers, and GDP growth in both regions significantly move this forex pair.

• Minimum spreads: 0.5-1.5 pips.
• Most active session: London.

XAU/USD

XAU/USD (Gold) — shows the value of gold in US dollars. It is a popular choice for traders during times of economic uncertainty because in the long run the price of gold has remained stable.

It usually tends to move in the opposite direction to the US dollar.

Central bank gold reserves, inflation expectations and the condition of global economy all contribute to the price of gold.

Traders closely monitor geopolitical events and market sentiment shifts as these can cause significant fluctuations in gold price.

• Minimum spreads: 1.0-2.5 pips.
• Most active session: New York.

AUD/USD

The AUD/USD pair is closely connected to the health of Australia’s export driven economy particularly in commodities (like iron ore, coal, and gold). It is highly sensitive to shifts in commodity prices and global demand.

Additionally, interest rate decisions from the Reserve Bank of Australia (RBA) and the US Federal Reserve drive movements. China’s economic performance also heavily influences this pair, as Australia’s largest trading partner.

• Minimum spreads: 0.3-1.2 pips.
• Most active session: Sydney.

USD/CAD

The USD/CAD reflects the economic connection between the US and Canada as oil plays a central role in driving this pair’s movements.

Canada’s large oil exports create a strong positive correlation between oil price fluctuations and the value of the Canadian dollar.

Economic indicators from both countries including GDP growth as well as employment numbers and interest rate decisions by the Bank of Canada (BoC) and the Federal Reserve are critical to the pair’s performance.

• Minimum spreads: 0.5-1.3 pips.
• Most active session: New York.

EUR/JPY

EUR/JPY highlights the economic contrasts between Japan and the Eurozone.

Traders often use it to exploit differences in monetary policies, with the European Central Bank (ECB) and the Bank of Japan (BoJ) playing key roles.

The pair is also influenced by overall market sentiment—where the yen tends to serve as a safe haven in times of crisis, while the euro mirrors general risk appetite.

• Minimum spreads: 0.5-1.5 pips.
• Most active session: Tokyo and London overlap.

GBP/JPY

As one of the more volatile currency pairs GBP/JPY is particularly favored by more experienced traders.

It’s often referred to as the “Dragon” because of its sharp price swings. The pair is highly sensitive to risk sentiment as well as economic announcements from both the UK and Japan.

Bank of Japan (BoJ) interventions alongside the Bank of England’s (BoE) policies are major influencers while Brexit related news has also added to its volatility in recent years.

• Minimum spreads: 1.0-2.0 pips.
• Most active session: London and Tokyo overlap.

EUR/GBP

Reflecting the political and economic dynamics between the Eurozone and the UK, the EUR/GBP trading pair serves as a key indicator of the strength of the euro relative to the British pound.

Since Brexit it has experienced heightened volatility, reacting to news concerning economic policy, tariffs and trade agreements.

Strongly influenced by the European Central Bank (ECB) and the Bank of England (BoE) traders pay close attention to inflation and employment data.

• Minimum spreads: 0.4-1.0 pips.
• Most active session: London.

NZD/USD

As an exporter of agricultural and dairy products, New Zealand’s position is represented by the NZD/USD pair which frequently responds to changes in global commodity prices.

Similar to the AUD, the NZD is classified as a commodity currency.

Monetary policies from the Reserve Bank of New Zealand (RBNZ) and the Federal Reserve are crucial influences along with global export demand and market sentiment toward risk.

• Minimum spreads: 0.5-1.2 pips.
• Most active session: Sydney.

Summary Table of 10 Most Popular Forex Pairs