- What are the most promising currency pairs in 2025?
- Which currency pairs to choose according to the investor profile?
- How to buy currency pairs in New Zealand?
- Our 5 tips for buying currency pairs
- FAQ
The currency pairs market continues to evolve rapidly, influenced by shifting global monetary policies, economic uncertainty, and heightened geopolitical tensions. Last year saw significant movements across major pairs, prompting more investors to explore the forex market for fresh opportunities. Many now seek the most promising currency pairs to buy in 2025. This page offers a comprehensive overview, highlighting top picks based on historical performance, market capitalization, growth potential, volatility, and sector trends—making it a practical guide for both beginners and seasoned investors.
Attention!
The content on this page is for informational purposes only and should not be taken as financial advice. Before investing in any financial products, it's essential that you conduct your own research, assess the risks, and act with caution, taking into account the applicable regulations in New Zealand.
What are the most promising currency pairs in 2025?
Currency pairs remain a central focus for investors in 2025, driven by shifting global monetary policy, liquidity, and the constantly evolving macroeconomic landscape. For traders and investors in New Zealand, monitoring major and minor pairs is crucial, as they offer access to deep markets, tight spreads, and various volatility profiles suitable for different strategies. Here is a comparative overview of the ten most popular and promising currency pairs to watch this year, selected for their liquidity, volatility, resilience, and market share.
| Currency Pair | Volatility | Liquidity | Correlation with other assets | Average spread (pips) | Regulation/Transparency |
|---|---|---|---|---|---|
| EUR/USD | Low | Very high | Strong link to risk assets | 0.6 | High |
| USD/JPY | Low-Mid | Very high | Negative to US10Y yields | 0.8 | High |
| GBP/USD | Mid-High | High | Correlated to equities | 1.2 | High |
| AUD/USD | Mid | High | Commodity-linked (metals) | 0.9 | High |
| USD/CAD | Mid | High | Oil price impact | 1.0 | High |
| NZD/USD | Mid | High | Commodity & China exposure | 1.0 | High |
| USD/CHF | Low | High | Safe haven, inverse equity | 0.8 | High |
| EUR/GBP | Low | High | Brexit, EU-UK politics | 1.1 | High |
| EUR/JPY | Mid | High | Risk-on sentiment gauge | 1.3 | High |
| GBP/JPY | High | High | High volatility, carry trade | 2.0 | High |
EUR/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (Jul 2025) | ~1.1830 | Establishes reference for returns and risk calculation |
| End-of-year forecast | 1.18–1.21 | Helps assess potential upside/downside for the year |
| Volatility | Low | Attracts conservative traders, easier risk management |
| Average daily volume | >$1.5 trillion | Indicates deep liquidity and tighter execution |
| Liquidity | Very high | Lower transaction costs and minimal slippage |
| Correlation to US equity | Positive during risk-on | Useful for portfolio diversification |
| Impact of central banks | High (Fed & ECB) | Policy changes can trigger strong moves |
| Spread (pips) | 0.6 | Lower spreads lead to reduced trading costs |
| Investor type | Institutional, retail | Suitable for wide range of investors |
| Market capitalization proxy | Largest in forex | High attention supports research and stability |
EUR/USD stands out as the most liquid and widely traded currency pair globally, making it a favourite for both institutions and retail traders. Its low volatility and tight spreads make execution highly efficient. The currency pair is influenced by US and Eurozone monetary policy, macroeconomic releases, and often reflects broader global risk sentiment. This pair is particularly important to watch in 2025 as shifting ECB and Fed policies, along with the US election, impact its direction.
USD/JPY
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (Jul 2025) | ~144.30 | Provides a real-time valuation benchmark |
| End-of-year forecast | 142–148 | Sets expectations for movement, risk planning |
| Volatility | Low-Mid | Preferred for mid-term range and trend traders |
| Average daily volume | >$900 billion | High depth, excellent order execution |
| Liquidity | Very high | Limits transaction costs |
| Yield correlation | Inverse to US 10Y | Links currency movement to global bond markets |
| Spread (pips) | 0.8 | Competitive execution for frequent traders |
| Central bank activity | Bank of Japan interventions | Key driver for short-term trends |
| Investor type | Carry traders, institutional | Attracts those seeking yield differentials |
| Market share | 13.2% of global FX volume | Indicates importance for global strategy |
USD/JPY is a staple for global macro and yield-driven strategies. The pair often serves as a safe haven during market stress and responds swiftly to US and Japanese interest rate differentials. With the Bank of Japan playing a proactive intervention role, its path this year will be shaped by inflation, policy shifts, and global bond market dynamics.
GBP/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (Jul 2025) | ~1.3704 | Useful for real-time ROI computation |
| End-of-year forecast | 1.36–1.41 | Offers medium-term guidance |
| Volatility | Mid-High | Attractive for active traders, more opportunities |
| Average daily volume | ~$600 billion | Ensures reliable trade execution |
| Liquidity | High | Facilitates large positions, less slippage |
| Political risk (UK) | Moderate, Brexit aftershock | Shapes price reaction to news |
| Spread (pips) | 1.2 | Moderate costs for standard traders |
| Year correlation to S&P 500 | Moderate positive | Links to broader equity moves |
| Investor type | Swing, event-driven traders | Favours those watching both UK and US data |
| Sensitivity to BoE policy | Elevated | Interest rate outlook directly impacts volatility |
GBP/USD is watched for its volatility and responsiveness to geopolitical and monetary events in both the UK and US. Rising or falling sharply during times of uncertainty, its behaviour in 2025 will reflect how the UK copes with post-Brexit shifts, Bank of England policy, and US dollar trends, making it a top choice for volatility-seeking traders.
AUD/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (Jul 2025) | ~0.7420 | Ensures timely tracking of value |
| End-of-year forecast | 0.72–0.76 | Highlights expected performance range |
| Volatility | Mid | Attractive for day and swing trading |
| Average daily volume | ~$350 billion | Sizable enough for active market participants |
| Liquidity | High | Supports short-term trading and hedging |
| Commodity link | High (metals/iron ore) | Sensitive to global commodity cycles |
| Spread (pips) | 0.9 | Keeps trading costs reasonable |
| Sensitivity to PBoC/China | High | China news strongly affects performance |
| Investor type | Hedgers, macro, retail | Useful for those exposed to commodity sectors |
| Seasonal patterns | Sometimes pronounced | Seasonal shifts impact returns |
AUD/USD is well-known among investors for its strong connections to the commodities sector and Chinese economic health. In 2025, market participants are monitoring Australia’s growth cycle, resource demand, and China’s recovery for signals, making it an appealing choice for exposure to Asia-Pacific trends.
USD/CAD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (Jul 2025) | ~1.2780 | Anchors risk and return assessment |
| End-of-year forecast | 1.27–1.32 | Useful for scenario planning |
| Volatility | Mid | Offers more pronounced price swings for traders |
| Average daily volume | ~$330 billion | Adequate for institutions and frequent traders |
| Liquidity | High | Ensures efficient execution, few price gaps |
| Oil price correlation | Direct link | WTI price changes drive CAD moves |
| Spread (pips) | 1.0 | Maintains cost efficiency for participants |
| NAFTA/USMCA impact | High (trade flows) | Economic deals reshape expectations |
| Seasonality | Sometimes present | Useful for calendar-based trading strategies |
| Investor type | Institutional, macro, retail | Adaptable liquidity for all user types |
USD/CAD should be tracked in 2025 due to Canada’s oil-driven economy and close trade ties with the US. Volatility in energy markets, trade negotiations, and central bank divergence can all result in meaningful price action, favouring those aware of global macro shifts.
NZD/USD
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (Jul 2025) | ~0.7040 | Important base for local NZ investors |
| End-of-year forecast | 0.68–0.72 | Sets local currency expectations |
| Volatility | Mid | Good for tactical trades |
| Average daily volume | ~$200 billion | Ensures liquidity for New Zealand participants |
| Liquidity | High | Smooth execution for major currency pair |
| Commodity exposure | Dairy, agriculture, forestry | Macroeconomic cycle affects NZD dynamics |
| Spread (pips) | 1.0 | Influences cost for retail traders |
| China sensitivity | High | Trade flows with China impact demand |
| Investor type | Domestic, export-focused | Relevant for hedging NZ business interests |
| RBNZ policy impact | Elevated | Interest rate moves rapidly affect pricing |
NZD/USD is particularly noteworthy for New Zealand-based investors, as it tracks the value of the local currency against the US dollar. With sensitivity to commodity prices and Chinese imports, this pair offers important opportunities for both regional economic hedging and global macro plays in 2025.
USD/CHF
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (Jul 2025) | ~0.8970 | Provides context for risk-off versus risk-on |
| End-of-year forecast | 0.88–0.92 | Facilitates planning for cross-asset correlations |
| Volatility | Low | Sought after during calm and defensive market conditions |
| Average daily volume | ~$300 billion | Sufficient for institutional execution |
| Liquidity | High | Ensures efficient, predictable trading |
| Safe haven behaviour | Pronounced | Useful in volatile geopolitical conditions |
| Spread (pips) | 0.8 | Favourable for position traders |
| Correlation to gold | High positive | Useful for commodity diversification strategy |
| Investor type | Defensive, portfolio hedgers | Provides safety in high-risk environments |
| SNB policy sensitivity | Important | Swiss National Bank decisions drive short-term swings |
USD/CHF is seen as a classic "safe haven" pair, inversely correlated to global equity markets and often moving in tandem with gold. In 2025, its appeal increases during episodes of geopolitical risk or US market volatility. For NZ investors, this pair can help diversify and defend portfolios during periods of global uncertainty.
EUR/GBP
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (Jul 2025) | ~0.8650 | Monitors the crossflow between two major UK/EU currencies |
| End-of-year forecast | 0.86–0.89 | Frameworks expectations for regional asset moves |
| Volatility | Low | Suitable for range trading strategies |
| Average daily volume | ~$100 billion | Offers adequate liquidity for significant orders |
| Liquidity | High | Competitive execution for cross-asset traders |
| Brexit aftershock | Diminishing but relevant | Periodic volatility on UK/EU news |
| Spread (pips) | 1.1 | Standard for cross currency pairs |
| Event risk | Moderate | Political changes can trigger movement |
| Investor type | Arbitrage, cross-hedgers | Useful in managing exposure between two regional markets |
| Correlation to GBP/USD | Moderate positive | Helps position size and hedge portfolios |
EUR/GBP attracts those interested in European and UK macro shifts. Its low volatility and strong liquidity are appealing for portfolio hedging and arbitrage. The currency pair often reacts to ECB and Bank of England commentary and remains on the radar for those balancing Sterling and Euro exposures in 2025.
EUR/JPY
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (Jul 2025) | ~170.70 | Useful for Asia-Europe diversification |
| End-of-year forecast | 167–175 | Encapsulates global economic outlook |
| Volatility | Mid | Balanced price swings, attractive for tactical traders |
| Average daily volume | ~$80 billion | Sufficient for short and longer-term strategies |
| Liquidity | High | Assures ease of entry/exit |
| Correlation to risk-on | High positive | Often rallies during bullish markets |
| Spread (pips) | 1.3 | Standard in cross-border trading |
| Central bank sensitivity | High (BoJ/ECB) | Rate differentials shape monthly trends |
| Investor type | Event-driven, global | Favourable for tracking international events |
| Geopolitical event impact | Notable | Jumps on surprising Asia/EU headlines |
EUR/JPY is an important cross-Atlantic/Asia pair, tracing macroeconomic sentiment between Europe and Japan. Its moderate volatility and links to risk-on behaviour make it popular for diversified trading strategies, especially when global event risk is in focus during 2025.
GBP/JPY
| Criterion | Description | Why it matters |
|---|---|---|
| Current price (Jul 2025) | ~197.90 | Benchmark for high-volatility cross pairs |
| End-of-year forecast | 193–205 | Gives a guide for large price swings |
| Volatility | High | Magnifies gains and losses, high reward/risk |
| Average daily volume | ~$50 billion | Adequate for swing and technical traders |
| Liquidity | High | Provides stability despite price movement |
| Carry trade opportunity | Very strong | Popular for seeking yield across interest rates |
| Spread (pips) | 2.0 | Higher costs, but offset by volatility |
| Central bank divergence | Significant (BoJ vs BoE) | Interest rate gaps shape overnight moves |
| Major market reactions | Pronounced | Reacts sharply to G7 announcements |
| Investor type | Aggressive, speculative | Favours sophisticated risk-tolerant participants |
GBP/JPY is known for its high volatility and robust carry trade appeal, making it attractive for aggressive market participants. Its price movements are often driven by diverging UK/Japan monetary policies and major global events. In 2025, this pair stands out for those seeking exposure to both European and Asian economic cycles.
Compare the best Forex brokersCompareWhich currency pairs to choose according to the investor profile?
Selecting the right assets in the currency pairs category depends on your investor profile, goals, and experience level. Each profile is suited to different types of pairs and strategies, whether you are just starting out or have advanced knowledge of the forex market. Below, you’ll find a table suggesting which assets may align best with your background and expectations.
| Investor Profile | Recommended Assets |
|---|---|
| Beginner | Major currency pairs (e.g. EUR/USD, GBP/USD, AUD/USD) — known for stability and ample information |
| Intermediate | Major pairs, plus some minor pairs (e.g. NZD/USD, EUR/GBP) with moderate volatility |
| Experienced | Major, minor, and selected exotic pairs (e.g. USD/SGD, EUR/TRY) that can offer higher potential |
Good to know
If you are just beginning, start with a small budget to learn the basics of trading without taking on unnecessary risk.
How to buy currency pairs in New Zealand?
Buying financial assets is now more accessible than ever, thanks to user-friendly and secure online platforms. With just a few basic steps, beginners in New Zealand can confidently start investing in various products, from shares to cryptocurrencies and ETFs. Here’s how to proceed safely:
| Step | What to do |
|---|---|
| Choose a reliable exchange or broker | Select a well-known, regulated platform trusted by NZ investors for your chosen asset type. |
| Create an account and verify identity | Register on the platform, then complete identity verification for security and compliance. |
| Deposit funds (bank card or wire transfer) | Transfer money using a convenient method, such as bank transfer or debit/credit card. |
| Purchase desired assets | Use the platform’s interface to buy the stocks, cryptocurrencies, ETFs, or commodities you want. |
| Secure their storage | For cryptocurrencies, consider an external wallet; for shares or ETFs, use a securities account. |
Tax on financial assets in New Zealand
In New Zealand, gains from buying and selling financial assets may be taxable under certain circumstances. It is important to keep accurate records of all your transactions and consult the Inland Revenue Department or a tax specialist for guidance on tax obligations.
Our 5 tips for buying currency pairs
Before investing in currency pairs, it’s important to take a few sensible precautions to protect your capital and make informed decisions. The forex market moves quickly, and being prepared will help you avoid common pitfalls and invest with greater confidence. The following recommendations are especially relevant for beginners and are aligned with the guidance provided by New Zealand’s Financial Markets Authority (FMA).
| Tip | Explanation |
|---|---|
| Research the basics of forex trading | Take time to learn how currency pairs work, including major drivers of price and common terminology. |
| Choose an FMA-licensed broker | Only use brokers authorised by the New Zealand Financial Markets Authority to ensure your funds are protected. |
| Start with a demo account | Practise trading with virtual money to build your skills without risking any real capital. |
| Never invest more than you can afford | Set clear limits to avoid excessive losses, and ensure that your main finances are unaffected by investments. |
| Review fees and trading conditions | Understand the broker’s fees, spreads, and minimum deposit requirements before committing real money. |
FAQ
What are currency pairs and why are they popular among investors in 2025?
Currency pairs represent the value relationship between two different currencies, such as NZD/USD. They are traded in the forex market, which is the largest and most liquid financial market worldwide. Many investors follow currency pairs because they offer numerous opportunities for trading, with prices changing rapidly based on global events.
What should I consider before trading currency pairs in 2025?
Before trading, it’s important to understand how factors like interest rates, economic news, and political events can affect currency values. Learning basic trading concepts, using regulated brokers, and knowing your risk tolerance can help you approach the currency pairs market more confidently.
How can I recognise if a currency pair might be promising in 2025?
A promising currency pair often shows strong trading volume, stable price movements, and reacts to global news or trends. Reviewing economic outlooks and past performance helps, but remember, no prediction is ever guaranteed. Staying informed and analysing price patterns are sensible ways to assess opportunity.
What strategies are common when investing in currency pairs?
Popular strategies include trend following, which is trading with the general direction of the market, and range trading, where investors focus on price boundaries. Many also use risk management tools like stop-loss orders to limit potential losses. It’s wise to practise strategies first on a demo account before committing real funds.
Are gains from currency pairs trading taxable in New Zealand?
Yes, profits from trading currency pairs are generally considered taxable income in New Zealand. It’s recommended to keep clear records of all your trades and consult with a local tax adviser or the Inland Revenue Department to ensure you meet all reporting and tax obligations.
What are currency pairs and why are they popular among investors in 2025?
Currency pairs represent the value relationship between two different currencies, such as NZD/USD. They are traded in the forex market, which is the largest and most liquid financial market worldwide. Many investors follow currency pairs because they offer numerous opportunities for trading, with prices changing rapidly based on global events.
What should I consider before trading currency pairs in 2025?
Before trading, it’s important to understand how factors like interest rates, economic news, and political events can affect currency values. Learning basic trading concepts, using regulated brokers, and knowing your risk tolerance can help you approach the currency pairs market more confidently.
How can I recognise if a currency pair might be promising in 2025?
A promising currency pair often shows strong trading volume, stable price movements, and reacts to global news or trends. Reviewing economic outlooks and past performance helps, but remember, no prediction is ever guaranteed. Staying informed and analysing price patterns are sensible ways to assess opportunity.
What strategies are common when investing in currency pairs?
Popular strategies include trend following, which is trading with the general direction of the market, and range trading, where investors focus on price boundaries. Many also use risk management tools like stop-loss orders to limit potential losses. It’s wise to practise strategies first on a demo account before committing real funds.
Are gains from currency pairs trading taxable in New Zealand?
Yes, profits from trading currency pairs are generally considered taxable income in New Zealand. It’s recommended to keep clear records of all your trades and consult with a local tax adviser or the Inland Revenue Department to ensure you meet all reporting and tax obligations.
