BUSINESS

Fact checked by Will Baker
Reviewed by Samantha Silberstein

What Are Currency Pairs?

Currency pairs combine the currencies of two countries. Each currency has a value and the relationship of those values contributes to the price of the pairs. So does trader interest.

Currencies are always traded in pairs because when you buy or sell one currency, you automatically sell or buy another. As an example, think about paying U.S. dollars when buying foreign currency for a trip abroad.

In every currency pair, there is a base currency and a quote currency. The base currency is the first currency shown, on the left. The quote currency is the second currency on the right.

The price for a currency pair is the amount of the quoted currency required to purchase one unit of the base currency.

So, for example, with the EUR/USD currency pair, EUR is the base currency, and USD is the quote currency. A currency pair price of 1.1000 means that 1.10 U.S. dollars are needed to buy one euro, or one euro is worth 1.10 U.S. dollars.

Key Takeaways

• The Bank for International Settlements publishes rankings of the most highly traded currency pairs every three years, most recently in 2022 with a new report expected later in 2025.
• Currencies are always traded in pairs, with one currency being the base currency and the other the quote currency.
• The euro and U.S. dollar (EUR/USD) are the most popular currency pair.
• The six currency pairs listed offer traders good liquidity and tight spreads.
• Factors such as trade relationships, a nation’s economic health, and interest rate changes can affect the pricing of currency pairs.

Forex Trades 24 Hours a Day, 5 Days a Week

Foreign exchange (forex) traders have the luxury of more highly leveraged trading with lower margin requirements compared to traders in equity markets. But before you jump headfirst into the fast-paced world of forex, you’ll want to know about the currency pairs that trade most often.

Here’s a look at six of the most traded currency pairs in forex, with rankings based on the 2022 triennial survey by the Bank for International Settlements (BIS).

1. EUR/USD: Trading the “Fiber”

The most traded currency pair is the EUR/USD, owing to the global prominence of the economies of the European single market and the United States. It made up 22.7% of overall market share, as of the 2022 BIS survey. That’s down from 24% market share in the previous 2019 survey. The high daily volume and liquidity of this pair ensure tight spreads for traders.

The EUR/USD tends to have a negative correlation with the U.S. dollar and Swiss franc (USD/CHF) and a positive correlation with the British pound/U.S. dollar (GBP/USD). This is due to the positive correlation of the euro, the British pound, and the Swiss franc.

In 2022, the war in Ukraine, along with the resulting energy crisis and political instability, weighed on the price of the euro. This briefly sent the EUR/USD below 1.00, meaning that for the first time in history, the U.S. dollar was more expensive than the euro.

2. USD/JPY: Trading the “Gopher”

The next most actively traded pair was the USD/JPY, with a market share of 13.5%, slightly higher than its prior 13.2%. This pair has historically been sensitive to political sentiment between the United States and the Far East.

It tends to be positively correlated to the USD/CHF and USD/CAD currency pairs. This relationship is due to the U.S. dollar being the base currency in all three pairs. USD/JPY also responds to changes made to interest rates by the Bank of Japan, and the effect on the yen relative to the U.S. dollar.

3. GBP/USD: Trading the “Cable”

Trading in the GBP/USD currency pair represented 9.5% of the forex market share, a small decrease from the prior survey in 2019. Again, the popularity and volume of trading in this pair reflect the strength of the British and U.S. economies.

The GBP/USD tends to have a negative correlation with the USD/CHF and a positive correlation with the EUR/USD. This is due to the positive correlation between the British pound sterling, the Swiss franc, and the euro.

Much like the euro, the economic consequences of the war in Ukraine also took a toll on the GBP. In September 2022, the GBP/USD briefly dipped below 1.03, the pair’s lowest level in decades.

4. USD/CNY: Trading the Yuan

The USD/CNY currency pair represents the relationship between the U.S. dollar and the Chinese renminbi, more commonly known as the yuan. Its market share in 2022 stood at 6.6%, a roughly 50% increase from 4.1% in 2019).

The U.S.-China trade relationship has been a volatile one, providing USD/CNY traders with plenty of speculative trading opportunities. Those interested in the USD/CNY should maintain awareness of developments in that relationship, as they could affect the pricing of the pair.

5. USD/CAD: Trading the “Loonie”

Market share for the USD/CAD currency pair increased to 5.5% from 4.4% in the previous survey three years ago. Interest rates in the U.S. and Canada will affect the price of this pair, reflecting the effects on the individual currencies. In addition, as oil is a major economic driver for Canada, its price will affect the price of Canadian currency. This in turn can have an impact on the currency pair.

The USD/CAD tends to be negatively correlated with the AUD/USD, GBP/USD, and EUR/USD pairs due to the U.S. dollar being the quote currency in these other pairs.

6. AUD/USD: Trading the “Aussie”

The AUD/USD currency pair captured 5.1% of the forex market share, compared to its previous 5.4%. It tends to have a negative correlation with the USD/CAD, USD/CHF, and USD/JPY pairs due to the U.S. dollar being the base currency in these cases.

The value of Australia’s currency is closely tied to the role and value of its exports in its economy. Therefore, a downward movement in that value could affect the AUD/USD currency pair value, strengthening the dollar to the loonie. The relationship between the interest rates set by the respective central banks can affect the currency pair price, as well.

Fast Fact

The forex market gives all traders, including retail investors, the potential to make money trading currency pairs. Understanding the fundamentals that drive currency pair pricing is essential to your success.

Why Is the EUR/USD Called the Fiber?

It’s considered by many to be an innovation update on the nickname “Cable” given to GBP/USD due to the steel cables laid across the seabed of the Atlantic Ocean in the 19th Century to facilitate communications between the U.S. and Great Britain. In other words, then it was cables, now it would be fiber optics.

Why Is the EUR/USD the Most Popular Currency Pair?

The U.S. currency is the most actively traded currency in the world. The euro is also highly traded. The reason for this is the perceived stability and strength of their economies and political environments. Because of this, the currency pair is the most viable for trading purposes.

Why Do Many of the Top Currency Pairs Include the USD?

Such pairings occur because of the strength of the American economy plus the power and stability of the government that backs the U.S. dollar.

The Bottom Line

Our list of the most actively traded currency pairs starts with the EUR/USD, which has the greatest trading volume. All six currency pairs offer the liquidity that investors who trade them need for profits.

However, various factors, such as trade relationships, changing interest rates, economic upheaval, and country disputes, including war, can affect individual currencies (and thus pairs). Make sure you’re up to date on such news and information before leaping into the forex market.

Greg Abel is Set to Become Warren Buffett’s Successor as Berkshire Hathaway CEO

Fact checked by Yarilet Perez
Reviewed by Akhilesh Ganti

Investors around the world have wondered for years who would take the reins of Berkshire Hathaway (BRK.A, BRK.B) once current CEO Warren Buffett passes away or retires.

On May 3, 2025, 94-year-old Buffett gave them a clear answer, announcing that he intends to step down as CEO at the end of the year and plans to ask the Berkshire Hathaway board to replace him with Greg Abel. “I think the time has arrived where Greg should become the chief executive officer of the company at year end,” Buffett said during the company’s annual meeting.

Abel, 62, joined the Berkshire Hathaway board in 2018 as vice chair of non-insurance operations. He has over 30 years of experience in various roles at Berkshire Hathaway Energy, including 10 years as CEO.

“I think the prospects of Berkshire will be better under Greg’s management than mine,” Buffett said at the 2025 meeting in Omaha, Neb.

Key Takeaways

• At the Berkshire Hathaway 2025 annual meeting, Warren Buffett announced his intention to step down at the end of the year, saying he will ask the Berkshire Hathaway board to make Greg Abel CEO.
• Abel is currently Berkshire’s vice chair of non-insurance business operations and the chair of subsidiary Berkshire Hathaway Energy.
• Abel has been at Berkshire since 2000, when the conglomerate bought an energy company he’d been running.
• Known as a low-key but hardworking dealmaker, Abel has spearheaded some of Berkshire’s biggest and most successful acquisitions.

The first indication that Abel would become CEO came at the Berkshire Hathaway shareholder meeting in 2021, when then-executive vice chair of Berkshire Hathaway Charlie Munger made an offhand comment indicating that Abel would succeed Buffett. Buffett then confirmed the news in a CNBC interview the following Monday.

“Greg will keep the culture,” Munger said at the time, discussing Berkshire’s decentralized operating structure. Abel had long been considered one of the front-running heirs apparent for CEO, along with his fellow board member Ajit Jain, vice chair of insurance operations.

In 2023, Buffett and Munger reaffirmed Abel’s place in the company and said they were “100% confident” in their decision. “Greg understands capital allocation as well as I do. That’s lucky for us,” Buffett said at the meeting. “He will make those decisions, I think, very much in the same framework as I would make them. We have laid out that framework now for 30 years.”

Let’s meet the man who is poised to preside over one of the largest U.S. corporations in the post-Buffett era.

Early Life and Education

Born on June 1, 1962, and raised in Edmonton, Canada, Gregory Abel graduated from the University of Alberta in 1984 with a commerce degree. He became an accountant and, after a stint with Big Four accounting firm PwC (PricewaterhouseCoopers), joined a small electricity company, CalEnergy, in 1992. In 1998, he rose to become president of the business, which expanded into a variety of energy operations, changing its name to MidAmerican Energy Holdings after one of the firms it acquired.

Abel became part of Berkshire Hathaway when the conglomerate bought MidAmerican in 2000. The firm eventually was re-named Berkshire Hathaway Energy (BHE). Abel served as its chief executive officer from 2008 to 2018. He currently serves as its chair.

With subsidiaries focused on coal, natural gas, hydroelectric, wind, solar, geothermal, and nuclear energy, BHE had nearly 24,000 employees and reported more than $25.9 billion in revenue for 2024.

Notable Accomplishments

BHE has accounted for and been involved in some of Berkshire’s largest acquisitions, including PacifiCorp in 2005, Nevada utility NV Energy in 2013, and Dominion Energy’s pipeline business in 2020.

Abel also nurtured Home Services, a small real estate brokerage that came with the purchase of another company. It’s now one of Berkshire’s most successful holdings.

At both MidAmerican and Berkshire, Abel was mentored by David Sokol, who seemed a likely successor to Warren Buffett until his resignation from Berkshire in 2011. Sokol was singing Abel’s praises to Buffett as early as 2007.

$20 million

Greg Abel’s compensation in 2023, according to Berkshire’s SEC filings.

Warren Buffett’s Successor

Although he tended to avoid public appearances and shareholder meetings, Abel’s reputation began to spread throughout the financial and business world, as did speculation about his role at a post-Buffett Berkshire. In September 2017, JP Morgan analyst Sarah DeWitt wrote in a note, “The most likely successor in our view, who Warren Buffett regularly praises, is Greg Abel.”

Then, in 2018, came the move that marked Abel as a potential heir apparent: Buffett elevated and appointed Abel, along with Ajit Jain, to the Berkshire Hathaway board of directors, creating two new seats for them. Abel received his current title: Vice-Chair of Non-Insurance Business Operations.

As such, Abel oversees all of Berkshire’s railroad, auto utilities, manufacturing, and retail subsidiaries—over 90 companies in all. All told, the non-insurance operations represent $150 billion in sales and comprise 250,000 employees.

For some time, Jain and Abel were both seen as likely successors to Buffett—in fact, some gave Jain the edge.

It’s possible that Abel’s age—he’s over a decade younger than the 73-year-old Jain—ultimately was the decisive factor in being named Buffett’s successor.

While at MidAmerican, Abel acquired a reputation as a superb dealmaker, leading and growing the company in more diversified directions through smart mergers and purchases, and managing the new acquisitions intelligently and efficiently. His handling of purchases of Enron’s gas lines and of a British firm, Northern Electric, stood out in particular.

Important

In his 2014 letter to shareholders, Charlie Munger characterized Greg Abel and Ajit Jain as “proven performers who would probably be under-described as ‘world-class.’ ‘World-leading’ would be the description I would choose. In some important ways, each is a better business executive than Buffett.”

Management Style

A resident of Des Moines, where Berkshire Energy is based, Abel leads a relatively low-key life, like Buffett. Although something of an insider’s secret, he has stepped up public appearances in the last few years and has become a notable onstage presence at recent annual meetings. His answers to questions, especially about energy conservation and sustainability, went down well with analysts and shareholders.

Note

Hockey is one of Abel’s passions. He played the sport as a boy and coaches his children’s teams. He previously served on the Hockey Canada Foundation’s Board of Directors.

Who Is Warren Buffett’s Successor?

In 2021, Greg Abel, chair of Berkshire Hathaway Energy, was named as Warren Buffett’s eventual successor. In 2025, Buffett announced that he would step down at the end of the year and would ask the Berkshire board to make Abel CEO.

What Is Greg Abel’s Net Worth?

Greg Abel’s net worth was estimated to be about $484 million in 2021.

How Much Is Warren Buffett Worth?

As of May 2025, Warren Buffett’s net worth is estimated to be about $160.9 billion.

The Bottom Line

Greg Abel will face challenges when he steps into the role of CEO of Berkshire Hathaway. An increasingly activist group of Berkshire shareholders is agitating for the company to spend more of its considerable cash reserves, to reduce its carbon footprint, and to promote diversity. All this, along with the fact that he’s not Warren Buffett.

But then, he won’t be inheriting Buffett’s exact role. The job Buffett did will probably be divvied up among various people. Abel would be the CEO of Berkshire, but Buffett’s son, Howard, is expected to be named Berkshire’s non-executive chairman.

Jain seems likely to continue as vice chair of insurance operations, and his job could expand further. He has also been cited as next in line for CEO, should anything happen to Abel.

Finally, there may well be a bigger role for Todd Combs and Ted Weschler. Both of these men are investment managers for Buffett and have been taking on greater responsibilities in managing smaller companies in the Berkshire portfolio. It is possible that both will be given more responsibility after Buffett’s departure.