News trading in forex involves taking advantage of the volatility and price movements created by high-impact economic events and news releases. However, not all currency pairs are equally affected by news events. Some currency pairs are more responsive to certain types of news, and understanding which forex pairs are most likely to move can help you improve your read on where volatility is likely.
In this guide, we’ll explore the best forex pairs for news trading in 2025, taking into account factors like liquidity, volatility, and their sensitivity to key economic events.
Quick Answer: Best Forex Pairs for News Trading
The most liquid forex pairs are EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, and USD/CAD – the major pairs that dominate daily forex turnover because each includes the US dollar (the world’s most-traded currency) paired with another highly-traded economy’s currency. Higher liquidity means tighter spreads, faster order execution, and price action that reacts cleanly to news — which is exactly why the major USD pairs are also strong choices for news trading. According to the BIS Triennial Central Bank Survey, these major pairs consistently account for the largest share of global currency turnover.
1. EUR/USD (Euro/US Dollar)
1.1 Why EUR/USD is Ideal for News Trading
The EUR/USD pair is the most liquid and heavily traded currency pair in the world, making it an excellent choice for news traders. Due to its high liquidity, EUR/USD tends to experience substantial volatility around major economic news events, such as U.S. Non-Farm Payrolls (NFP), Federal Reserve interest rate decisions, and Eurozone economic reports.
Key News Events Impacting EUR/USD:
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U.S. Economic Data: Since the USD is involved in this pair, U.S. economic releases such as GDP, CPI, and employment reports significantly influence EUR/USD price movements.
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ECB Announcements: The European Central Bank (ECB) plays a major role in determining the direction of the EUR. News related to ECB policies, interest rate decisions, or Quantitative Easing (QE) can cause volatility in EUR/USD.
Pros of Trading EUR/USD for News:
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High Liquidity: The high trading volume ensures that there is enough market participation for smooth execution of trades.
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Strong Market Reactions: EUR/USD shows clear reactions to news releases, making it easier to spot potential opportunities.
2. GBP/USD (British Pound/US Dollar)
2.1 Why GBP/USD is Ideal for News Trading
The GBP/USD, also known as the “Cable,” is another popular pair for news trading due to the significant volatility it experiences around major economic events, particularly those related to UK and U.S. economic data.
Key News Events Impacting GBP/USD:
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Bank of England (BoE) Policy Announcements: Interest rate decisions, inflation reports, and BoE speeches heavily influence the GBP. A shift in the BoE’s stance can lead to substantial price movements in GBP/USD.
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U.S. Economic Reports: As with the EUR/USD, reports from the U.S., like NFP, CPI, and GDP, affect the USD side of the pair, thus impacting GBP/USD.
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Brexit Developments: Geopolitical news related to Brexit or UK political events can create substantial volatility in GBP/USD, especially if there’s unexpected news.
Pros of Trading GBP/USD for News:
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High Volatility: GBP/USD often experiences larger price swings following major news events, creating fast-moving trading conditions.
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Strong News Sensitivity: The pair is very responsive to both U.S. and UK economic reports, as well as central bank actions from both the Fed and BoE.
3. USD/JPY (US Dollar/Japanese Yen)
3.1 Why USD/JPY is Ideal for News Trading
The USD/JPY is another highly liquid and volatile pair that is sensitive to both U.S. and global economic data. It is particularly responsive to interest rate decisions and geopolitical events due to the influence of both the U.S. Dollar and the Japanese Yen.
Key News Events Impacting USD/JPY:
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U.S. Economic Reports: Like NFP, GDP, and CPI reports, U.S. data directly impacts the USD side of the pair, often causing sharp moves in USD/JPY.
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BoJ (Bank of Japan) Announcements: The BoJ’s monetary policy decisions, especially regarding interest rates and quantitative easing, have a significant impact on the JPY side.
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Geopolitical Events: The Japanese Yen is considered a safe-haven currency. Therefore, global risk sentiment and geopolitical tensions can trigger large moves in USD/JPY as traders seek safe-haven assets in times of uncertainty.
Pros of Trading USD/JPY for News:
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Strong Reaction to Risk Sentiment: USD/JPY is highly reactive to market risk appetite, making it a great pair to trade during times of geopolitical tensions or economic uncertainty.
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Clear Price Action: USD/JPY often exhibits clear, strong moves during major news releases, which can be capitalized on with the right strategy.
4. USD/CHF (US Dollar/Swiss Franc)
4.1 Why USD/CHF is Ideal for News Trading
The USD/CHF pair is another popular choice for news traders because of the Swiss Franc’s status as a safe-haven currency. During times of uncertainty or global risk aversion, the CHF tends to appreciate, and news that influences global risk sentiment can significantly affect USD/CHF.
Key News Events Impacting USD/CHF:
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U.S. Economic Data: As with other USD pairs, U.S. economic reports like NFP, GDP, and CPI directly affect USD/CHF.
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Geopolitical Events: The Swiss Franc is a safe-haven currency, so any geopolitical or market uncertainty that causes risk-off sentiment will likely lead to a rise in the CHF.
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Swiss National Bank (SNB): The Swiss National Bank’s monetary policy decisions and interventions can lead to sharp moves in USD/CHF, particularly if they take unexpected actions to weaken or strengthen the CHF.
Pros of Trading USD/CHF for News:
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Sensitivity to Global Risk Sentiment: USD/CHF is an ideal pair for trading when geopolitical events or market risk sentiment cause fluctuations in the market.
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Strong Risk-Aversion Movements: Because of the safe-haven nature of the CHF, this pair can experience larger price swings during periods of global uncertainty.
5. AUD/USD (Australian Dollar/US Dollar)
5.1 Why AUD/USD is Ideal for News Trading
The AUD/USD pair is heavily influenced by both U.S. economic data and commodity prices, as Australia is a major exporter of natural resources such as coal, iron ore, and gold. As a result, commodity-related news and U.S. data have a significant impact on AUD/USD.
Key News Events Impacting AUD/USD:
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Commodity Price Movements: Because Australia is a major exporter of commodities, news related to commodity prices, especially iron ore and gold, can cause significant price movements in AUD/USD.
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U.S. Economic Reports: Like GDP and NFP, U.S. economic releases influence the USD, which affects AUD/USD.
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RBA (Reserve Bank of Australia) Announcements: The Reserve Bank of Australia’s (RBA) interest rate decisions and economic outlook are key to determining the direction of the AUD.
Pros of Trading AUD/USD for News:
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Sensitivity to Global Commodity Prices: The pair often moves with shifts in commodity markets, offering news traders opportunities to capitalize on commodity-related news.
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Strong Response to U.S. Data: Like other USD pairs, AUD/USD is highly responsive to U.S. economic data and can provide volatility for short-term traders.
6. NZD/USD (New Zealand Dollar/US Dollar)
6.1 Why NZD/USD is Ideal for News Trading
Similar to the AUD/USD pair, the NZD/USD is sensitive to both U.S. economic data and commodity prices, as New Zealand is a major exporter of agricultural products such as dairy and meat. This makes commodity news a key driver for the pair.
Key News Events Impacting NZD/USD:
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Commodity Price Movements: Dairy prices (especially for milk) play a crucial role in determining the value of the NZD. News that affects global commodity markets can have a significant impact on NZD/USD.
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U.S. Economic Reports: As with other USD pairs, NFP, GDP, and CPI reports from the U.S. can drive large movements in NZD/USD.
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RBNZ (Reserve Bank of New Zealand) Announcements: The Reserve Bank of New Zealand’s (RBNZ) policy decisions, including interest rates and economic outlook, heavily impact the NZD.
Pros of Trading NZD/USD for News:
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Commodity Sensitivity: NZD/USD is an ideal pair for trading during major commodity news releases, especially those related to agricultural products.
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Volatility from U.S. Data: As with other USD pairs, NZD/USD is highly sensitive to U.S. economic news, providing frequent short-term trading opportunities.
7. Conclusion
When trading high-impact news events, it’s important to focus on forex pairs that offer liquidity, volatility, and a high degree of sensitivity to market-moving news. Based on these criteria, some of the best forex pairs for news trading in 2025 include:
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EUR/USD – Highly liquid and responsive to U.S. and Eurozone data.
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GBP/USD – A volatile pair influenced by both UK and U.S. economic releases.
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USD/JPY – A safe-haven pair, sensitive to both U.S. data and global risk sentiment.
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USD/CHF – Reacts to global risk sentiment and safe-haven flows.
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AUD/USD – Sensitive to commodity prices and U.S. economic data.
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NZD/USD – A good choice for trading commodity-related news and U.S. reports.
By understanding how each currency pair responds to specific news events, you can build a more informed news-trading approach. Trading around high-impact news carries substantial risk — the same volatility and slippage that create opportunity can also produce losses — so disciplined risk management matters as much as pair selection.
Why Liquidity Matters for News Trading
Liquidity is simply how easily a currency pair can be bought or sold without moving its price. A highly liquid pair has a constant, deep pool of buyers and sellers, so large trade volumes clear at (or very near) the quoted price. This matters directly for news traders in three ways:
- Tighter spreads: Liquid pairs like EUR/USD typically carry the lowest spreads on the market, since brokers compete on a deep, active order book. Wider spreads on thinly-traded pairs eat directly into a news trade’s profit margin, especially on fast, short-hold trades around a release.
- Faster, more reliable execution: When a high-impact release hits (e.g. NFP or a rate decision), liquid pairs absorb the sudden order flow with less slippage. Illiquid pairs can gap or requote sharply in the same seconds, which is a real execution risk news traders need to plan for.
- Cleaner price discovery: Because so many participants are trading a liquid pair simultaneously, its price reaction to news tends to reflect the market’s genuine consensus view faster — useful for reading whether a move is likely to continue or fade.
Liquidity and Trading Sessions
Forex liquidity is not constant through the day — it rises and falls with which financial centers are open:
- London session: The single largest share of daily forex volume; EUR/USD, GBP/USD, and USD/CHF see their deepest liquidity here.
- New York session: Overlaps with London for several hours — historically the highest-liquidity window of the day for USD pairs, and where most major US economic releases (NFP, CPI, Fed decisions) land.
- Tokyo/Asian session: Drives liquidity in USD/JPY and the commodity-linked AUD/USD and NZD/USD pairs, particularly around Bank of Japan and RBA/RBNZ news.
- Low-liquidity windows (e.g. the gap between the NY close and Tokyo open) can widen spreads on every pair — worth avoiding for news-event entries unless the release specifically falls in that window.
The practical takeaway: trading the major pairs above during their most active session overlap generally gives the tightest spreads and cleanest execution around a news event — not just picking a liquid pair, but trading it at the right time.
FAQ: Best Forex Pairs for News Trading
What is the most liquid forex pair?
EUR/USD is generally the most liquid forex pair in the world, accounting for the largest share of daily global forex turnover, which is why it typically has the tightest spreads of any pair.
Why do liquid pairs matter more for news trading?
Liquid pairs absorb the sudden spike in order flow around high-impact news with less slippage and tighter spreads than thinly-traded pairs, which reduces execution risk during the fast price moves that follow a release.
Are exotic currency pairs good for news trading?
Generally no. Exotic pairs (e.g. those involving emerging-market currencies) have much lower liquidity, wider spreads, and less predictable price action around news — the execution risk usually outweighs the extra volatility for news-trading strategies.
Does liquidity change during the day?
Yes. Liquidity rises during the London and New York session overlap and thins out during the gap between the New York close and the Tokyo open, so the same pair can have very different spreads depending on the time of day.