10 Most Traded Currencies in 2025 Guide Forex Dominance
- ForexCity Signal
- Apr 2, 2023
- 4 min read
Updated: Apr 28
The foreign exchange (forex) market is the largest financial market in the world, with a daily trading volume exceeding $7.5 trillion in 2025. At its core are the world’s most traded currencies, the heavyweights that drive global trade, investment, and economic stability. Whether you’re a beginner dipping your toes into forex or a seasoned trader, understanding these currencies is key to navigating the market. In this guide, we’ll explore the top 10 most traded currencies, why they matter, and how they shape the global economy.
Why These Currencies Rule the Forex Market
Currencies are traded in pairs (e.g., USD/EUR), and their value reflects economic strength, geopolitical stability, and market demand. The most traded currencies belong to economies with robust financial systems, high liquidity, and global influence. Data from the Bank for International Settlements (BIS) shows that the top 10 currencies account for over 95% of forex transactions. Let’s dive into the list, ranked by their share of global trading volume in 2025.
1. United States Dollar (USD)
Trading Share: ~88%
The USD, often called the "greenback," is the world’s primary reserve currency. It’s involved in nearly 88% of all forex transactions, per BIS data. Why? The U.S. boasts the largest economy, a stable financial system, and the dollar’s role in international trade (e.g., oil is priced in USD). From EUR/USD to USD/JPY, the dollar is the backbone of forex.
Fun Fact: The USD’s dominance began post-World War II with the Bretton Woods Agreement.
2. Euro (EUR)
Trading Share: ~32%
The euro, used by 20 European Union countries, is the second most traded currency. Its strength lies in the EU’s collective economic power and the European Central Bank’s policies. The EUR/USD pair is the most traded globally, making up about 24% of daily forex volume.
Tip for Traders: Watch ECB interest rate decisions—they heavily influence EUR volatility.
3. Japanese Yen (JPY)
Trading Share: ~17%
The yen is a safe-haven currency, sought after during economic uncertainty. Japan’s export-driven economy and low interest rates make the USD/JPY pair a favorite for carry trades. Despite Japan’s aging population, the yen remains a forex staple.
4. British Pound (GBP)
Trading Share: ~13%
The pound sterling, one of the oldest currencies, thrives due to the UK’s financial hub status in London. GBP/USD, nicknamed “Cable,” is a volatile pair loved by day traders. Brexit uncertainties have faded, but Bank of England policies keep GBP in focus.
5. Australian Dollar (AUD)
Trading Share: ~7%
The AUD, a commodity-linked currency, is tied to Australia’s exports, like iron ore and coal. Its correlation with global growth makes AUD/USD a barometer for risk sentiment. Traders watch China’s economy, as it’s Australia’s largest trading partner.
6. Canadian Dollar (CAD)
Trading Share: ~5%
The CAD, or “Loonie,” is driven by Canada’s oil exports. The USD/CAD pair moves with crude oil prices, making it a favorite for commodity traders. Canada’s proximity to the U.S. ties its economy—and currency—closely to its neighbor.
7. Swiss Franc (CHF)
Trading Share: ~5%
The CHF is another safe-haven currency, backed by Switzerland’s political neutrality and strong banking sector. USD/CHF and EUR/CHF pairs are popular, with the Swiss National Bank’s interventions occasionally stirring volatility.
8. Chinese Yuan (CNY)
Trading Share: ~4%
The yuan’s rise reflects China’s growing economic clout. Though tightly controlled by the People’s Bank of China, the USD/CNY pair is gaining traction as China liberalizes its markets. Expect the yuan’s share to grow in the coming years.
9. Swedish Krona (SEK)
Trading Share: ~2%
The SEK benefits from Sweden’s stable economy and open trade policies. EUR/SEK is a niche pair, but its low volatility appeals to conservative traders. Sweden’s tech-driven economy adds to the krona’s appeal.
10. New Zealand Dollar (NZD)
Trading Share: ~2%
The NZD, tied to New Zealand’s agricultural exports, rounds out the list. The NZD/USD pair, known as “Kiwi,” tracks commodity prices and global risk appetite. New Zealand’s small but resilient economy keeps the NZD relevant.
How These Currencies Shape Your Trading Strategy
Each currency has unique drivers—interest rates, commodity prices, or geopolitical events. Beginners should start with major pairs like EUR/USD or USD/JPY due to their liquidity and tight spreads. Seasoned traders might explore exotic pairs involving CNY or SEK for diversification. Always use technical analysis (e.g., moving averages) and stay updated on economic calendars to catch market-moving events. Want to trade like a pro? Unlock exclusive market insights and advanced trading tools with our premium subscription
Why Forex Matters in 2025
The forex market’s size and accessibility make it a playground for traders worldwide. With central banks adjusting rates post-pandemic and geopolitical tensions simmering, currency volatility is high. Understanding the top traded currencies equips you to seize opportunities, whether you’re hedging, speculating, or investing.
FAQs
What is the most traded currency pair?
The EUR/USD pair, accounting for ~24% of daily forex volume, is the most traded due to the economic weight of the U.S. and EU.
Why is the USD so dominant?
The USD’s dominance stems from its role as the world’s reserve currency, used in global trade, debt issuance, and commodity pricing.
Are safe-haven currencies good for beginners?
Yes, safe-haven currencies like JPY and CHF are stable, but their low volatility may limit profits for short-term traders.
How can I start trading forex?
Open a brokerage account, learn basic technical analysis, and start with a demo account to practice trading major pairs.
Conclusion
The top 10 most traded currencies are more than just money—they’re the pulse of the global economy. From the USD’s unmatched dominance to the yuan’s rising star, each currency offers unique opportunities for traders. Stay informed, trade smart, and let these currencies guide your forex journey in 2025.
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