The Best Forex Pairs for News Trading in 2025

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 maximize your profit potential.

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.

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:

• 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.

• 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:

• High Liquidity: The high trading volume ensures that there is enough market participation for smooth execution of trades.

• 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:

• 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.

• 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.

• 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:

• High Volatility: GBP/USD often experiences larger price swings following major news events, creating profitable opportunities.

• 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:

• 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.

• 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.

• 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:

• 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.

• 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:

• U.S. Economic Data: As with other USD pairs, U.S. economic reports like NFP, GDP, and CPI directly affect USD/CHF.

• 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.

• 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:

• 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.

• 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:

• 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.

• U.S. Economic Reports: Like GDP and NFP, U.S. economic releases influence the USD, which affects AUD/USD.

• 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:

• Sensitivity to Global Commodity Prices: The pair often moves with shifts in commodity markets, offering news traders opportunities to capitalize on commodity-related news.

• 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:

• 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.

• 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.

• 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:

• Commodity Sensitivity: NZD/USD is an ideal pair for trading during major commodity news releases, especially those related to agricultural products.

• 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:

1. EUR/USD – Highly liquid and responsive to U.S. and Eurozone data.

2. GBP/USD – A volatile pair influenced by both UK and U.S. economic releases.

3. USD/JPY – A safe-haven pair, sensitive to both U.S. data and global risk sentiment.

4. USD/CHF – Reacts to global risk sentiment and safe-haven flows.

5. AUD/USD – Sensitive to commodity prices and U.S. economic data.

6. NZD/USD – A good choice for trading commodity-related news and U.S. reports.

By understanding the dynamics of each currency pair and how they respond to specific news events, you can tailor your news trading strategy to maximize profits while minimizing risk.