10 Most Volatile Forex Pairs

 

10 Most Volatile Forex Pairs revealed. We have researched 10 forex pairs to find the ones that are the most volatile in the market.

 

 

 

Most Volatile Currency Pairs

 

What is Volatility in Forex Trading?

Forex trading volatility indicates the extent to which currency pairs fluctuate within a given period, indicating market activity and potential trade opportunities.

In contrast to stable markets that can be deceivingly calm, volatility presents a dynamic landscape of risk and reward that astute traders leverage for lucrative gains from rapid price swings.

 

The 10 Most Volatile Forex Pairs in South Africa

1. ☑️AUD/JPY – Australian Dollar / Japanese Yen
2. ☑️NZD/JPY – New Zealand Dollar / Japanese Yen
3. ☑️GBP/EUR – British Pound / Euro
4. ☑️CAD/JPY – Canadian Dollar / Japanese Yen
5. ☑️GBP/AUD – British Pound / Australian Dollar
6. ☑️USD/ZAR – US Dollar / South African Rand
7. ☑️USD/KRW – US Dollar / South Korean Won
8. ☑️USD/BRL – US Dollar / Brazilian Real
9. ☑️USD/TRY – US Dollar / Turkish Lira
10. ☑️USD/MXN – US Dollar / Mexican Peso

 

1. AUD/JPY – Australian Dollar / Japanese Yen

AUD/JPY is a major currency pair that represents a pairing of the Australian dollar against the Japanese yen.

The pairing of the Australian dollar against the Japanese yen enjoys high volatility due to the inverse relationship between the Australian dollar and the Japanese yen.

The Australian dollar is a commodity currency, which means its price is linked to the price and volume of Australia’s exports, particularly minerals, metals, and more.

 

Here’s a comparison table 

 

 

Pros and Cons

 

Why is AUD/JPY considered a volatile forex pair?

AUD/JPY is highly sensitive to global risk sentiment and commodity prices. Australia’s commodity-driven economy and Japan’s safe-haven status cause large price swings, especially during Asian and early London sessions.

 

When is the best time to trade AUD/JPY?

The best trading hours are during the Asian session (1:00 AM – 9:00 AM SAST) when both markets overlap. Volatility increases around Australian data releases and Bank of Japan monetary policy updates.

 

2. NZD/JPY – New Zealand Dollar / Japanese Yen

NZD/JPY is a major currency pair of the New Zealand dollar against the Japanese yen, and much like the Australian dollar, the New Zealand dollar is a commodity currency with its value closely tied to the price of New Zealand’s agricultural exports, making this pair particularly volatile.

Top New Zealand exports include dairy, eggs, meat, wood, and honey, and as a result, any changes in the price of any of these markets will affect NZD’s value against the Japanese yen.

 

Here’s a comparison table

 

Pros and Cons

 

Is NZD/JPY a good pair for swing trading?

Yes, NZD/JPY often forms clean trends, making it suitable for swing traders. It reacts strongly to commodity demand, dairy prices, and economic news from New Zealand and Japan, offering good technical opportunities.

 

What drives volatility in NZD/JPY?

Key drivers include interest rate differentials, RBNZ policy, Japanese inflation, and global risk appetite. Sudden shifts in equity markets or risk sentiment can trigger sharp movements in this pair.

 

3. GBP/EUR – British Pound / Euro

GBP/EUR is a pairing of the British pound against the euro, and following Brexit, this pair has seen constant volatility.

Volatility in this pair could decrease if a withdrawal agreement is made, but so far, there has been no sign of consensus.

 

Here’s a comparison table

 

 

Pros and Cons

 

Why do traders love GBP/JPY despite its risk?

GBP/JPY is nicknamed the “Dragon” due to its extreme volatility. It offers wide daily ranges, making it attractive for scalpers and swing traders. However, it’s high-risk and requires strict risk management.

 

What is the average daily range of GBP/JPY?

The pair often moves 150–200 pips daily, especially during the London–Tokyo overlap. Political events in the UK and BOJ decisions often increase volatility further.

 

4. CAD/JPY – Canadian Dollar / Japanese Yen

CAD/JPY pairs the Canadian dollar and the Japanese yen.

The yen is seen as a haven, and the Canadian dollar is a commodity currency, with its value on the currency market heavily influenced by the price of oil on the commodity market.

 

Here’s a comparison table

 

 

Pros and Cons

 

What makes CAD/JPY a unique forex pair to trade?

CAD/JPY links a commodity currency (CAD) with a safe-haven (JPY), creating strong reactions to oil prices, interest rate changes, and risk sentiment. It offers clean trends, especially during North American and Asian trading sessions.

 

When is CAD/JPY most volatile?

CAD/JPY shows higher volatility during the New York–Tokyo overlap (2:00 PM – 4:00 PM SAST). Key drivers include Bank of Japan and Bank of Canada announcements, as well as fluctuations in global oil markets.

 

5. GBP/AUD – British Pound / Australian Dollar

The GBP/AUD pair is made up of the British pound and the Australian dollar.

Historically, these two currencies have been linked, mainly since Australia is part of the Commonwealth of Nations.

But, being a commodity currency, the price of AUD is heavily linked to the value of Australia’s exports.

A knock-on effect of the US’s trade war with China is that Australian imports to the Chinese markets have fallen, resulting in currency pairs that contain AUD that have seen increased volatility since the start of the trade war.

 

Here’s a comparison table

 

 

Pros and Cons

 

Is GBP/AUD suitable for day trading?

Yes, GBP/AUD offers consistent intraday volatility, often exceeding 100 pips daily. Its movement is influenced by UK economic releases and Australian commodity news, creating frequent short-term trading opportunities.

 

What impacts GBP/AUD volatility the most?

The biggest drivers include Bank of England interest rate decisions, RBA commentary, and geopolitical developments affecting the British pound or Australian dollar.

 

6. USD/ZAR – US Dollar / South African Rand

USD/ZAR sets the US dollar against the South African rand, and the Volatility in this pair is greatly affected by the price of gold because gold is one of South Africa’s main exports and is priced in US dollars on the world market.

If the price of gold is rising, the price of the dollar will most likely also increase against the ZAR.

 

Here’s a comparison table

 

 

Pros and Cons

 

Why is USD/ZAR volatile in South Africa?

USD/ZAR is influenced by local political risk, mining output, and dollar strength. It reacts sharply to South African inflation data, Reserve Bank decisions, and shifts in global emerging market sentiment.

 

What should I watch when trading USD/ZAR?

Monitor key SA economic indicators (CPI, GDP), USD strength, and risk-off events. Volatility spikes during local elections or U.S. Fed decisions due to strong capital flow sensitivity.

 

7. USD/KRW – US Dollar / South Korean Won

The USD/KRW is a pairing of the US dollar against the South Korean won.

The South Korean Won, in its current form, was formed after the Second World War. 

Following separation, the South allied with America, and the North allied with Russia, and as a result, the economic differences between capitalism and communism became apparent.

The won currently trades at around 1000 to one against the US dollar.

 

Here’s a comparison table

 

 

Pros and Cons

 

Is USD/KRW commonly traded by retail forex traders?

USD/KRW is less common for retail traders due to limited availability on major platforms. However, it’s actively traded by institutional players and affected by Bank of Korea policies, tech exports, and geopolitical tensions in Asia.

 

What moves the USD/KRW exchange rate the most?

USD/KRW is influenced by South Korea’s trade balance, tech sector performance, and U.S. dollar strength. Risk events involving North Korea, interest rate decisions, and inflation data also cause sharp price movements.

 

8. USD/BRL – US Dollar / Brazilian Real

The USD/BRL pair is the US dollar against the Brazilian real, a pair that frequently enjoys frequent movements, in turn creating opportunities for traders who focus on day trading or even scalping.

 

Here’s a comparison table

 

 

Pros and Cons

 

Why is USD/BRL considered high risk?

USD/BRL is highly volatile due to Brazil’s political instability, inflation, and commodity exposure. Spreads are wide, and liquidity is low compared to majors. It’s best suited for experienced traders aware of emerging market risks.

 

When is the best time to trade USD/BRL?

USD/BRL sees the most activity during the New York session and Brazil’s market hours. Monitor central bank news (BCB), inflation releases, and commodity price shifts, especially soybeans, coffee, and oil.

 

9. USD/TRY – US Dollar / Turkish Lira

USD/TRY incorporates the US dollar and the Turkish lira.

The Turkish lira has been highly volatile since 2016 following a failed coup d’état and the subsequent ‘purges’ that have been taking place in Turkish society, and politics in Turkey has been highly unstable ever since.

Because of the uncertainty surrounding the lira, USD/TRY is a key pair to watch.

 

Here’s a comparison table

 

 

Pros and Cons

 

Why is USD/TRY extremely volatile?

USD/TRY is known for dramatic swings driven by Turkey’s high inflation, political instability, and unconventional monetary policy. Interest rate cuts or intervention by the Central Bank of Turkey can cause sudden multi-percent price changes.

 

What’s the main risk when trading USD/TRY?

Liquidity drops sharply during off-peak hours. Slippage, spread spikes, and unexpected central bank actions are common. Use low leverage and strict risk controls when trading this pair.

 

10. USD/MXN – US Dollar / Mexican Peso

USD/MXN – puts the US dollar against the Mexican peso – with tensions rising between these two countries after US President Donald Trump won the 2016 presidential election.

The current tariff rate of 20% has already caused volatility in this pair to substantially increase.

 

Here’s a comparison table for the USD/MXN (US Dollar / Mexican Peso)

 

 

Pros and Cons

 

What makes USD/MXN attractive to forex traders?

USD/MXN offers large daily price movements, often exceeding 150 pips. It’s influenced by oil prices, U.S.–Mexico trade relations, and Banxico interest rates, making it popular for volatility-based strategies.

 

What time is best for trading USD/MXN?

The New York session is best, especially during U.S. and Mexican economic releases. Watch for market-moving data like NFP, inflation reports, and U.S. Fed decisions for big price swings.

 

The difference between trading currency pairs with high volatility versus low volatility.

Currencies with high volatility will normally move more pips over a certain period than currencies with low volatility, and this will lead to an increased risk when trading currency pairs with high volatility. 

Currencies with high volatility are more prone to slippage, and due to high-volatility currency pairs making bigger moves, traders should determine the correct position size to take when trading them.

 

Most Volatile Currency Pairs

 

The least volatile currency pairs

The least volatile currency pairs are generally the majors and can include 

•  EUR/USD 

•  USD/JPY 

•  GBP/USD

•  USD/CHF

 

How to trade forex volatility

• According to research in South Africa, the forex market is one of the biggest and most active markets in the world. In layman’s terms, trading on the forex market means making profits by purchasing or short-selling one or more currency pairs.
• By using different technical analysis indicators, fundamental analysis, or a combination of both, traders evaluate the future movement of one currency against another.
• Technically speaking, forex trading is all about knowing what to trade, and when it comes to the active trade of forex currency pairings, volatility is an essential part of most strategies.
• Whether traders are interested in pursuing profit from hypothetical endeavors or hedging financial risk, a currency’s inherent volatility is one aspect of its behavior that must be accounted for.
• Volatility is an important consideration in everything from forecasting weather patterns to projecting the future price action of trades.

 

5 simple steps will help traders get started in trading forex volatility:

• Research which forex pair to trade
• Carry out analysis on that forex pair (technical and fundamental).
• Choose a forex trading strategy
• Create an account and deposit funds
• Open, monitor, and close the first position

 

The Basics

• All currencies are defined according to the international standard code or ISO currency code and labeled with three-letter tags. A currency pair comprises a base currency and a second, quote currency.
• The value following the currency pair symbolizes how many units of the quoted [second] currency equal one unit of the base currency.
• Executing forex trade orders means that traders will buy the base currency and sell the quoted currency at the same time.
• A sell order would be performed by selling the base currency and buying the quoted currency.

 

There are different categories of currency pairs, including:

• Major currency pairs – These contain the US dollar and are most commonly thought to be among the most liquid pairs
• Cross-currency pairs (cross pair) – Where the US dollar is neither a base nor quoted currency
• Minors – Cross-currency pairs that contain some of the other major currencies, such as the EUR, JPY, or GBP
• Exotic pairs – These contain one major currency and one from an emerging market

 

Worldwide Forex Market Hours 

International Trade Worldwide is open weekly from Monday through Friday and has unique trading hours, but the four most important time windows are as follows:

 

Volatility Explained

• Everybody knows that shop prices are not static and they can rise or fall at any time.
• Often, shoppers may pop into a shop and see that the price of, for instance, chocolate has risen, just to return the next day to see it has risen again. Why does the price rise so quickly?
• So simply put, volatility means the rate at which the price of chocolate can rise, and it can be measured both as a percentage and in monetary units.
• Volatility is every so often associated with the price fluctuations or the amplitude of the price movements.
• Volatility is regarded by Forex traders as one of the most important informational indicators for decisions on the opening or closure of currency positions.
• Volatility plays a very crucial role in risk assessment for financiers. 

 

There are two types of volatility:

• Historical volatility 
• Expected volatility 

 

Identifying Stable Currencies and Volatile Currencies

While almost any currency can experience volatility, certain currencies have a tendency to remain more stable against their peers, and these will generally be currencies representing economies that have differentiated production of goods and services, low inflation, stable trade and balance of payments indicators, stable political systems, balanced government accounts, and stable and predictable monetary policy.

 

 

 

You might also like:

Best FCA Regulated Forex Brokers

Best Forex Brokers with ZAR Accounts

Best Forex No Deposit Bonus Brokers

Best Forex Brokers in South Africa 2025

Best FREE Forex Trading Apps October 2025

 

Frequently Asked Questions

 

What are the factors that influence the volatility of currency pairs?

Factors such as geopolitics, interest rate differentials, the value of imports and exports of a country, and the perceived strength of each currency’s issuing country.

 

What are the most volatile forex pairs?

Here is a list of the 10 Most Volatile Forex Pairs

 

What are the major pairs for Forex currency trading?

Major Pairs include:

 

•  EUR/USD – Euro/US Dollar

•  USD/JPY – US Dollar/Japanese Yen

•  GBP/USD – British Pound/US Dollar

•  USD/CHF – US Dollar/ Swiss Franc

•  AUD/USD – Australian Dollar/US Dollar

• USD to CAD – US Dollar/Canadian Dollar

•  NZD/USD – New Zealand Dollar/US Dollar

 

What is the easiest forex pair to trade for beginners?

Some traders think that EUR/CHF is the most suitable currency pair for beginner traders.

 

What are the 5 most traded currencies in the world?

•  US Dollar (USD)

•  Euro (EUR)

•  Japanese Yen (JPY)

•  Great British Pound (GBP)

•  Australian or Aussie Dollar (AUD)

 

What is the difference between a Base Currency and a Quote Currency?

The first listed currency of a currency pair is referred to as the base currency, and the second currency is noted as the quote currency. Currency pairs compare the value of one currency to another—the base currency versus the quote currency.

 

What is an Exotic Pair, and is it similar to Major Forex Pairs?

Exotic currency pairs refer to currency pairs that are made up of a major currency paired with the currency of an emerging or a strong but smaller economy from a global perspective such as Hong Kong or Singapore.

 

What is the Most Popular Currency Pair to trade?

The EUR/USD currency pair is the most traded currency pair on the market to date.

 

What do the terms “Minor Pairs” or “Minor Currency Pairs” refer to?

Minor currency pairs are ones that leave out the United States dollar, and they are normally less liquid.  Examples include EUR/CHF, CAD/JPY, and GBP/AUD.