- What are the most promising currency pairs in 2025?
- Which currency pairs to choose for your investor profile?
- How to buy currency pairs in South Africa?
- Our 5 Tips Before Buying Currency Pairs
- FAQ
- On the same topic
The currency pairs market is evolving rapidly in 2025, influenced by shifting central bank policies, economic developments, and global events. Last year saw significant volatility and notable moves in major pairs, highlighting the importance of monitoring market trends. As investor interest grows, many are now eager to identify which currency pairs offer the best opportunities for the coming year. This page delivers an overview of the most promising assets, considering historical performance, market capitalisation, growth prospects, volatility, and sector dynamics. The guide is designed for both newcomers and experienced investors.
Warning!
The content of this page is provided for informational purposes only and does not constitute financial advice. Before investing in financial products like currency pairs, conduct your own research, assess the risks, and act with caution, taking into account all applicable South African regulations.
What are the most promising currency pairs in 2025?
The currency pairs market remains the most liquid and most widely traded asset class worldwide. In 2025, shifts in global monetary policy, divergent regional growth, and evolving geopolitical conditions are shaping both risk and opportunity across major and emerging market pairs. For South African investors and traders, identifying the pairs that combine high adoption, robust liquidity, strategic importance, and promising volatility is key to navigating increasingly dynamic forex conditions. Below is a comparative table summarising the 10 most prominent and promising currency pairs to watch this year—selected based on their market impact, trading characteristics, and growth prospects.
| Pair | Volatility | Liquidity | Correlation with Other Assets | Average Spreads | Market Adoption |
|---|---|---|---|---|---|
| EUR/USD | Medium | Very High | High correlation with equities and commodities | Very Low | Highest |
| USD/JPY | High | Very High | Inverse correlation with global risk sentiment | Very Low | Very High |
| GBP/USD | Medium | High | Follows UK/US economic cycles | Low | High |
| USD/CHF | Low | High | Inverse correlation to equities (safe-haven) | Low | High |
| USD/CAD | Medium | High | Correlates with oil prices | Low | High |
| AUD/USD | Medium | High | Commodity-bloc, follows risk cycles | Low | High |
| NZD/USD | Medium | Medium | Commodity exposure, risk-on sentiment | Low | Medium |
| EUR/JPY | High | High | Cross-asset, combines Europe/Asia flows | Low | High |
| EUR/GBP | Low | High | Highly sensitive to EU-UK developments | Very Low | High |
| USD/ZAR | High | Medium | Correlates with EM flows, commodities, SA macro factors | Medium | High (SA) |
EUR/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | ~1.1830 | Sets the entry reference for traders |
| End-of-year forecast | 1.1900–1.2150 range | Outlook guides positioning for volatility seekers |
| Volatility | Medium | Ideal risk-profile for both short- and mid-term |
| Liquidity | Very High | Assures minimal slippage and tight spreads |
| Average spread | 0.6–1.2 pips | Reduces trading costs on frequent transactions |
| Correlation with equities | High | USD/EUR reacts to risk-on/off shifts |
| Market share | 22.7% of global forex | Indicates dominance and depth |
| Trading volume | Peak during London/NY overlap | Informs best trading times |
| Macro factors | Driven by Fed/ECB policy, eurozone/U.S. data | Policy shifts can move the pair significantly |
| Investor type | All—from retail to institutional | Broad participation improves price discovery |
EUR/USD remains the world’s top-traded currency pair, benefiting from unrivalled liquidity, minimal spreads, and a market central to global macro themes. Its large adoption ensures robust price discovery and accessibility at all times. In 2025, the interplay between Fed and ECB policy, along with improved eurozone sentiment, suggests continued two-way action, creating ample trading opportunities for both trend and range traders.
USD/JPY
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | ~144.30 | Benchmark for yen exposure |
| End-of-year forecast | 145.00–152.00 | Suggests upside on renewed yen weakness/risk aversion |
| Volatility | High | Appeals to active, experienced traders |
| Liquidity | Very High | Supports large positions with ease |
| Average spread | 0.8–1.5 pips | Allows cost-effective hedging, scalping |
| Correlation with risk assets | Inverse | Moves with global risk sentiment, safe-haven flows |
| Market share | 13.2% of daily volume | Ensures round-the-clock trading |
| Bank of Japan policy impact | Strong | Provides clear signals for price direction |
| Trading session importance | Leads in Asian hours, spikes with US/Asia volatility | Key for short-term positioning |
| Investor type | Hedgers, macro/speculative, carry traders | Wide use reflects structural relevance |
USD/JPY attracts attention due to its role as a global safe-haven and a proxy for risk sentiment. The pair's volatility is amplified by ongoing Bank of Japan policy moves and global shifts in investor risk appetite. For South African and global traders, USD/JPY remains a high-opportunity instrument for capturing directional moves in risk-on or risk-off environments.
GBP/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | ~1.3704 | Serves as a primary UK markets indicator |
| End-of-year forecast | 1.3850–1.4100 | Points to likely divergence amid UK/US developments |
| Volatility | Medium | Balances opportunity with manageable risk |
| Liquidity | High | Effortless trade execution |
| Average spread | 0.9–1.6 pips | Reduces cumulative trading costs |
| Macroeconomic sensitivity | Very high (UK & US data) | Quick to reflect economic releases |
| Correlation with commodities | Moderate (oil/gold) | Inflation and risk moves translated rapidly |
| Market share | 9.6% of daily forex | Highly followed and liquid |
| Trading hours peak | Overlaps London/New York | Informs best execution times |
| Investor type | Broad, includes macro, retail and options traders | Diverse user base supports liquidity |
GBP/USD represents the classic “Cable” pair, serving as both a key indicator of UK economic sentiment and a preferred vehicle for trading major economic releases. In 2025, its sensitivity to both Fed and Bank of England policy, as well as structural UK economic themes, keeps it prominent for trend and event-driven traders.
USD/CHF
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | ~0.9070 | Guides Swiss franc exposure |
| End-of-year forecast | 0.8900–0.9400 | Wide range reflects global risk uncertainty |
| Volatility | Low to Medium | Suits conservative and hedging approaches |
| Liquidity | High | Ensures minimal impact per trade |
| Average spread | 1.1–1.8 pips | Suitable for both day- and swing trading |
| Safe-haven function | Strong | Attracts capital during market stress |
| Swiss National Bank (SNB) actions | Highly impactful | Directly affects price with interventions |
| Correlation with gold | Positive | Reflects risk and inflation hedging |
| Market share | Top-5 globally | Reliable access anytime |
| Investor type | Risk-averse, diversifiers, institutions | Adds resilience to portfolios |
The USD/CHF pair is popular for its safe-haven qualities and historical stability, often moving in tandem with risk sentiment and Swiss economic conditions. In times of market volatility or geopolitical unease, USD/CHF provides portfolio balance, making it a staple for conservative and institutional participants.
USD/CAD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | ~1.2550 | Proxy for Canadian and oil-linked trades |
| End-of-year forecast | 1.2300–1.2700 | Oil trends and North American dynamics at play |
| Volatility | Medium | Predictable range for tactical positions |
| Liquidity | High | Supports scaled strategies |
| Average spread | 1.0–1.4 pips | Efficient for frequent entries/exits |
| Correlation with oil prices | High | Canadian economy closely tied to oil exports |
| Bank of Canada impact | Strong (monetary policy) | Shifts FX rates on announcements |
| Trading volume | Elevated during US/Canadian hours | Informs best timing |
| Market share | Top-7 globally | Confidence in execution |
| Investor type | Sector traders, hedgers, macro speculators | Portfolio diversity |
USD/CAD is a major pair for those seeking commodity exposure, given its strong ties to crude oil prices and North American trade developments. It is especially interesting in 2025 as global demand, energy prices, and Canadian economic recovery shape volatility and trading opportunities.
AUD/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | ~0.7420 | Yardstick for Australian market and metals |
| End-of-year forecast | 0.7600–0.8000 | Reflects outlook for Asia-Pacific economies |
| Volatility | Medium | Favors swing and positional traders |
| Liquidity | High | Cost-efficient for larger trades |
| Average spread | 0.9–1.3 pips | Suitable for frequent activity |
| Commodity exposure | High (metals/energy) | Sensitive to global demand, China growth |
| Correlation with equities | Positive | Moves with global “risk-on” sentiment |
| Time zone advantage | Asia-Pacific, strong regional participation | Aids round-the-clock opportunities |
| Market share | Top-6 globally | Robust activity in several sessions |
| Investor type | Commodity, hedge, and macro participants | Appeals to risk-tolerant profiles |
AUD/USD stands out due to its integration into commodity cycles and the Asia-Pacific growth engine. Its close ties to the Chinese economy and appetite for metals help shape volatility, providing diversification for those looking beyond western economic themes in 2025.
NZD/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | ~0.6950 | Key for agricultural and Asia-Pacific trends |
| End-of-year forecast | 0.7100–0.7500 | Potential for yield and growth-driven moves |
| Volatility | Medium | Accommodates technical trading |
| Liquidity | Medium | Efficient for major trading sessions |
| Average spread | 1.2–1.7 pips | Attractive compared to crosses |
| Commodity exposure | High (dairy, agriculture) | Linked to NZ and global food dynamics |
| Reserve Bank of New Zealand role | Strong influence | Policy changes directly impact pair |
| Correlation with AUD | High | Somewhat interchangeable in Asia times |
| Market share | Top-10 globally | Easy access for frequent traders |
| Investor type | Macro, event-driven, regional managers | Useful for strategy variety |
NZD/USD is relevant for those focused on agricultural and emerging Asia-Pacific themes. The pair reacts to global food price trends and New Zealand economic developments, offering both swing and trend opportunities as worldwide demand patterns shift in 2025.
EUR/JPY
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | ~170.65 | Indicates Europe/Asia capital allocation |
| End-of-year forecast | 172.00–176.00 | Wide range for trading, reflects macro interplay |
| Volatility | High | Opportunities for momentum and reversal trading |
| Liquidity | High | Supports efficient positioning on moves |
| Average spread | 1.1–1.6 pips | Competitive for actively traded cross |
| Correlation with equities | Mixed, often risk-sensitive | Attractive for cross-market strategy |
| Macro event sensitivity | High—ECB, BOJ, geopolitical themes | Moves on news from two major regions |
| Trading session overlap | Active in both EU and Asian hours | 24h relevance for global traders |
| Market share | Top-8 globally | High accessibility worldwide |
| Investor type | Cross-asset, hedge, and tactical traders | Favoured for complex strategies |
EUR/JPY is a leading cross-pair combining European and Japanese capital flows. It’s notable for its unique response to major global news, diverse trading session activity, and potential as a spread or hedging instrument for sophisticated currency strategies in 2025.
EUR/GBP
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | ~0.8620 | Shows balance of power EU/UK |
| End-of-year forecast | 0.8700–0.9000 | Sensitive to European and British events |
| Volatility | Low | Suitable for steady-state portfolio building |
| Liquidity | High | Promotes low cost, quick trade execution |
| Average spread | 0.8–1.2 pips | Efficient for scalping and frequent trades |
| Brexit/Trade news impact | High | Reacts to shifting political, trade scenarios |
| Market share | Top-9 globally | Attractive for UK/EU diversification |
| Trading hours | Peak UK/EU session | Guides daily entry windows |
| Investor type | Range, arbitrage, low-volatility seekers | Good for risk-managed strategies |
EUR/GBP is an appealing choice for traders focused on the evolving relationship between the UK and EU. With relatively low volatility, this pair is ideal for range-trading and hedging, especially when political or trade tensions drive short-term action in 2025.
USD/ZAR
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (July 2025) | ~17.70 | Benchmark for South African rand exposure |
| End-of-year forecast | 16.80–18.30 | Wide range highlights volatility opportunity |
| Volatility | High | Attractive for tactical, directional trading |
| Liquidity | Medium | May be impacted on major news events |
| Average spread | 1.5–4.0 pips | Wider than majors, appropriate for volatility |
| Correlation with EM/commodities | High | Moves with SA macro and global commodity flows |
| SARB policy impact | Strong | Rate decisions and policy impact fluctuations |
| Trading hours | Peak during SA/European overlap | Key to liquidity timing |
| Market share | Top EM pair, highest in Africa | High relevance for local investors |
| Investor type | Emerging market, high-volatility, hedge | Provides access to local and EM macro trends |
USD/ZAR is a central focus for South African investors and those tracking emerging markets. Its sensitivity to commodity cycles, domestic policy, and global risk sentiment ensures persistent volatility, opening the door for meaningful tactical opportunities in 2025.
Compare the best Forex brokersCompareWhich currency pairs to choose for your investor profile?
Choosing which currency pairs to buy depends on your investor profile, personal goals, and how much experience you have in the forex market. Beginners will benefit from simple and widely traded currency pairs, while those with more experience may look for more opportunities in less liquid or exotic pairs. Always consider your risk tolerance, desired returns, and willingness to learn when deciding which assets are right for you.
| Investor Profile | Recommended Assets |
|---|---|
| Beginner | Major currency pairs like EUR/USD, USD/JPY, GBP/USD. These pairs are most liquid and easier to follow. |
| Intermediate | In addition to majors, consider minor pairs such as EUR/GBP or AUD/USD for more options and diversity. |
| Experienced | Include minor and exotic pairs (like USD/ZAR), and use advanced strategies for diversification. |
Good to know
If you’re just starting out, it’s wise to begin with a small budget so you can learn the basics and develop your skills without taking on excessive risk.
How to buy currency pairs in South Africa?
Buying financial assets is now accessible to everyone thanks to digital platforms regulated for the South African market. Whether you're interested in stocks, cryptocurrencies, ETFs, or commodities, following a few essential steps helps you invest with confidence. Here are the main steps to guide you as a beginner:
| Step | What to do |
|---|---|
| Choose a reliable exchange or broker | Select a well-regulated platform that is authorised to operate in South Africa. |
| Create an account and verify identity | Register by providing your details and complete the required identity verification (KYC) process. |
| Deposit funds (bank card or wire transfer) | Fund your account using a secure bank card or wire transfer. |
| Purchase desired assets | Use the platform’s interface to select and buy your preferred assets (stocks, crypto, ETFs, or commodities). |
| Secure their storage | Store your assets safely: use a securities account for shares/ETFs or an external wallet for cryptocurrencies. |
Good to know:
In South Africa, capital gains on financial assets may be taxable. Keep accurate records of all your transactions.
Our 5 Tips Before Buying Currency Pairs
Before investing in currency pairs, it is crucial to take a few key precautions to protect yourself and your money. The foreign exchange market is highly dynamic and involves significant risks alongside potential rewards. By preparing well, understanding regulatory frameworks such as those set by the FSCA (Financial Sector Conduct Authority) in South Africa, and using reliable platforms, you can invest with greater confidence and security.
| Tip | Explanation |
|---|---|
| Choose a licensed and regulated broker | Always select a forex broker authorised by the FSCA in South Africa to ensure your funds are protected by the law. |
| Start with a demo account | Practice with virtual funds to understand how currency pairs trading works before risking real money. |
| Set a clear budget and stick to it | Decide how much you can afford to invest and never trade with money you cannot afford to lose. |
| Stay informed with reliable sources | Follow updates from official financial news and regulator announcements to understand market conditions and risks. |
| Understand the tax and reporting rules | Be aware that profits from trading currency pairs may be taxable in South Africa—keep proper records for SARS. |
FAQ
What is a currency pair, and why does it matter for investing in 2025?
A currency pair shows how much one currency is worth compared to another. It is important for investors because movements in exchange rates create opportunities and risks in the global forex market.
How can I spot a promising currency pair in 2025?
Look for pairs with strong trends, higher trading volumes, and stable economic outlooks in both countries. It’s also wise to consider recent news and any political or economic changes.
What are the main strategies for trading currency pairs this year?
Common strategies include following current trends, trading the news, and using stop-losses to limit potential losses. Many investors start with a practice (demo) account to build their skills before risking real funds.
Is it risky to invest in currency pairs, and how can I limit my risk?
Yes, trading currency pairs carries risks due to market swings and global events. To limit risk, set clear budgets, use risk-management tools like stop-loss orders, and never trade more than you can afford to lose.
How do global economic events influence currency pairs in 2025?
Events like interest rate changes, political shifts, or economic crises can quickly impact exchange rates. Investors need to stay updated with financial news and monitor key indicators to navigate these changes.
What is a currency pair, and why does it matter for investing in 2025?
A currency pair shows how much one currency is worth compared to another. It is important for investors because movements in exchange rates create opportunities and risks in the global forex market.
How can I spot a promising currency pair in 2025?
Look for pairs with strong trends, higher trading volumes, and stable economic outlooks in both countries. It’s also wise to consider recent news and any political or economic changes.
What are the main strategies for trading currency pairs this year?
Common strategies include following current trends, trading the news, and using stop-losses to limit potential losses. Many investors start with a practice (demo) account to build their skills before risking real funds.
Is it risky to invest in currency pairs, and how can I limit my risk?
Yes, trading currency pairs carries risks due to market swings and global events. To limit risk, set clear budgets, use risk-management tools like stop-loss orders, and never trade more than you can afford to lose.
How do global economic events influence currency pairs in 2025?
Events like interest rate changes, political shifts, or economic crises can quickly impact exchange rates. Investors need to stay updated with financial news and monitor key indicators to navigate these changes.
On the same topic
