G10 Currencies: Complete List & Trading Guide 2025

What Are G10 Currencies? Definition and Overview

The G10 currencies represent the most liquid and heavily traded currencies in the global foreign exchange market. Despite the name suggesting 10 currencies, the group actually comprises 11 major currencies from the world’s most industrialised economies.

The G10 designation originated from the Group of Ten countries that agreed to participate in the General Arrangements to Borrow (GAB) with the International Monetary Fund (IMF) in 1962. Switzerland joined later, bringing the total to 11 members, though the original name persisted. Understanding these major currencies is essential for anyone participating in international trade, investment or forex markets, as they form the backbone of global financial transactions.

Complete List of G10 Currencies

The following table provides a comprehensive overview of all G10 currencies with their key characteristics:

^{Source: BIS Triennial Central Bank Survey 2025. As two currencies are involved in each transaction, the sum of shares in individual currencies will total over 100%.}

USD
The US dollar dominates global finance as the world’s primary reserve currency, held by central banks worldwide. It features in nearly 90% of all forex transactions and serves as the standard currency for commodities like oil and gold. The Federal Reserve’s monetary policy decisions significantly impact global markets, making USD movements crucial for international investors.

EUR
The euro, representing 20 European nations, stands as the second most traded currency globally. With a combined GDP exceeding $17.9trn in 2024, the eurozone represents one of the world’s largest economic blocs. The European Central Bank manages monetary policy across member states, though fiscal policies remain national responsibilities — a dynamic that can create market volatility during economic stress periods.

JPY
Japan’s yen serves as Asia’s premier currency and a traditional safe-haven asset during market turbulence. The Bank of Japan’s decades-long ultra-low interest rate policy has made the yen a popular funding currency for carry trades, where investors borrow in yen to invest in higher-yielding assets. However, this strategy carries substantial risk if exchange rates move unfavourably.

GBP
The pound sterling, once the world’s dominant reserve currency, remains highly influential in global markets. London’s position as a major financial centre ensures significant GBP trading volumes, particularly in the GBP/USD pair, commonly known as “cable.” Brexit-related developments continue to influence sterling volatility, requiring careful risk management from traders.

CHF
Switzerland’s franc maintains its reputation as the ultimate safe-haven currency, backed by the country’s political stability, strong economy and conservative fiscal policies. The Swiss National Bank occasionally intervenes in currency markets to prevent excessive franc appreciation, which could harm Switzerland’s export-dependent economy. Investors should monitor SNB policy statements for intervention signals.

CAD
The Canadian dollar exhibits strong correlation with commodity prices, particularly oil, as energy exports constitute a significant portion of Canada’s economy. This relationship makes CAD sensitive to global energy market dynamics. The Bank of Canada typically follows Federal Reserve policy direction closely, given the extensive trade relationship between the two nations.

AUD
Australia’s dollar serves as a proxy for Asia-Pacific economic health and commodity demand, particularly from China. The Reserve Bank of Australia’s interest rate decisions often reflect both domestic conditions and regional economic trends. AUD typically performs well during global risk-on periods but can experience sharp declines during market stress.

NZD
The New Zealand dollar, smallest among G10 currencies by economic size, punches above its weight in forex markets. High interest rates relative to other developed nations have historically attracted carry trade investors. However, NZD’s relatively thin liquidity can lead to outsized moves during volatile periods, amplifying both gains and losses.

NOK
Norway’s krone correlates strongly with oil prices due to the country’s substantial petroleum exports. The country’s sovereign wealth fund, built from oil revenues, provides economic stability but doesn’t eliminate currency volatility. Norges Bank maintains an active approach to monetary policy, making NOK sensitive to both domestic and global energy market developments.

SEK
The Swedish krona represents one of Europe’s most advanced economies outside the eurozone. Sveriges Riksbank, the world’s oldest central bank, pioneered negative interest rates in modern times. SEK tends to be more volatile than other G10 currencies due to Sweden’s relatively small, open economy and its sensitivity to global risk sentiment.

Key Characteristics of G10 Currencies

High Liquidity and Trading Volume

G10 currencies dominate global forex markets with unmatched liquidity. The major pairs — EUR/USD, USD/JPY, GBP/USD — offer tight spreads even for large transactions, typically 1–3 pips during normal market hours. This liquidity ensures efficient price discovery and reduces transaction costs, though spreads can widen significantly during major economic releases or geopolitical events.

Freely Floating Exchange Rates

Unlike many emerging market currencies, G10 currencies generally float freely, with values determined by market forces. Central banks may occasionally intervene, but such actions are relatively rare and typically telegraphed through official communications. This market-driven pricing mechanism provides transparency but also means exchange rates can experience significant volatility during periods of uncertainty.

Economic Stability and Low Volatility

G10 currencies typically exhibit lower volatility than emerging market currencies due to their countries’ developed economies, stable political systems and mature financial markets. However, past stability doesn’t guarantee future performance, and unexpected events can trigger substantial moves.

G10 Countries and Their Economic Significance

Why Are There 11 Countries in the G10 Group?
The G10 formed in 1962 when Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, the UK and the US agreed to provide supplementary resources to the IMF through the GAB. Switzerland joined as an associate member in 1964, creating 11 members while retaining the G10 designation for continuity.

These nations collectively represent approximately 50% of global GDP and house the world’s major financial centres. Their economic policies influence global trade, investment flows and monetary conditions far beyond their borders.

Role in International Monetary System

G10 currencies serve critical functions in the international monetary system:

The IMF’s Special Drawing Rights basket includes five currencies (USD, EUR, GBP, JPY and CNY), the first four of which are G10 currencies, reflecting their importance in international finance. Changes to this basket composition can significantly impact currency demand and relative valuations.

G10 vs G7 vs G20 Currencies: Key Differences

Understanding the distinctions between these currency groupings helps clarify their respective roles in global finance:

The G7 currencies subset focuses on the largest industrialised democracies, while G20 currencies include major emerging markets like the Chinese renminbi, Brazilian real and Indian rupee. For forex traders, G10 currencies offer the best combination of liquidity, transparency and market depth, though emerging market currencies can provide higher volatility and potential returns — with correspondingly higher risks.

Trading G10 Currencies: Market Insights

Most Traded G10 Currency Pairs
The most liquid G10 currency pairs, known as the “majors,” dominate daily trading volume:

• EUR/USD (Fiber): Accounts for 21.2% of daily forex volume (BIS, April 2025). Influenced by ECB and Fed policy divergence, eurozone economic data and US dollar strength.

• USD/JPY: Represents 14.3% of daily volume. Sensitive to risk sentiment, with yen strengthening during market stress and weakening during risk-on periods.

• GBP/USD (Cable): Comprises 7.6% of daily volume. GBP/USD exhibits higher volatility, which may appeal to experienced traders but also increases risk.

• AUD/USD: Popular for carry trades when interest rate differentials favour AUD. Correlates strongly with commodity prices and Chinese economic data.

• USD/CAD (Loonie): Inversely correlated with oil prices. Traders monitor both Bank of Canada policy and energy market dynamics.

Trading these pairs provides liquidity advantages but involves leverage and volatility risks that can lead to substantial losses. London-New York overlap (1:00 PM – 5:00 PM GMT) offers peak liquidity for European and American currencies.

Factors Affecting G10 Exchange Rates

Multiple interconnected factors drive G10 currency movements:

• Economic Indicators: GDP growth, inflation (CPI/PPI), employment data and manufacturing indices provide fundamental valuation metrics. Surprises relative to consensus forecasts often trigger immediate market reactions.

• Monetary Policy: Central bank decisions on interest rates, quantitative easing and forward guidance fundamentally affect currency values. Policy divergence between central banks creates trading opportunities but requires monitoring multiple economic regions.

• Political Developments: Elections, policy changes and geopolitical tensions can cause significant volatility. The 2016 Brexit referendum and 2024 US elections demonstrate how political events can trigger sustained currency trends.

• Market Sentiment: Risk-on/risk-off dynamics affect currency flows, with safe havens (CHF, JPY, USD) gaining during uncertainty while commodity currencies (AUD, CAD, NZD) typically benefit from positive sentiment.

• Technical Factors: Many traders use technical analysis, creating self-fulfilling prophecies at key levels. Understanding common technical indicators helps anticipate potential market movements.

Central Bank Influence on G10 Currencies

Central banks wield enormous influence over their currencies through various policy tools:

Central bank communication strategies have evolved significantly, with most G10 central banks now providing detailed forward guidance. However, unexpected policy shifts can cause substantial volatility, as seen during the 2015 Swiss franc de-pegging event when EUR/CHF moved over 30% in minutes.

G10 Currencies in the Global Context

Exchange Rates Against Major Currencies
G10 currencies exhibit varying relationships with emerging market currencies. During global economic expansion, emerging market currencies often appreciate against G10 currencies as investors seek higher yields. Conversely, G10 currencies typically strengthen during risk-off periods as capital flows reverse.

Exchange rate movements between G10 currencies and emerging markets can exceed 20% annually, creating both opportunities and risks for international investors. Hedging strategies become crucial for managing exposure, though hedging costs can significantly impact returns, particularly for currencies with high interest rate differentials.

Impact on Global Forex Markets

G10 currencies set the tone for global forex markets. Their deep liquidity allows large transactions without significant price impact, making them preferred vehicles for international trade and investment. Central banks in emerging markets often peg or manage their currencies against G10 benchmarks, particularly the US dollar, creating transmission mechanisms for G10 monetary policy globally.

The dominance of G10 currencies in international finance means their volatility can trigger cascading effects across global markets. The 2022 dollar strength cycle, driven by Federal Reserve tightening, created significant pressure on emerging market currencies and debt servicing costs, demonstrating the systemic importance of G10 currency stability.

Conclusion

G10 currencies form the foundation of the global financial system, facilitating international trade, investment and economic coordination. Their high liquidity, relative stability and transparent markets make them essential instruments for forex traders, international businesses and investors worldwide.

Understanding the unique characteristics of each G10 currency, from the dollar’s reserve status to the franc’s safe-haven appeal, provides crucial context for navigating international markets. The interplay between these currencies reflects broader economic trends, policy divergences and shifting market sentiment that shape global finance.

While G10 currencies offer many advantages including deep liquidity and extensive analytical coverage, they still carry substantial risks. Exchange rates can move dramatically based on economic data, central bank decisions and geopolitical events. While continuous education, disciplined risk management and realistic expectations about potential returns and losses are all important steps, participants in G10 currency markets should seek independent financial advice and fully understand the risks before engaging in trading activities.

As the global economy evolves, with emerging markets growing in importance and digital currencies emerging, G10 currencies will likely maintain their central role while adapting to new challenges. Traders and investors must stay informed about both traditional factors affecting these currencies and emerging trends that may reshape international finance in the years ahead.