All Share (J203) = 88 342
Rand / Dollar = 18.56
Rand / Pound = 23.33
Rand / Euro = 19.32
Gold (usd/oz) = 2 925.06
Platinum (usd/oz) = 971.01
Brent (usd/barrel) = 75.91
Trade +10,000 CFDs with Tight Raw Spreads. – Trade Now!

10 Most Volatile Forex Pairs

Best Forex Brokers with Volatility 75 Index - Main Banner

 

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

In this in-depth guide, you’ll learn:

  • What is Volatility in Forex Trading?
  • What are the Factors that Influence Forex Volatility?
  • Benefits and Risks Trading Volatile Pairs.
  • Strategies for Trading Volatile Pairs.
  • Popular FAQs about Volatile Forex Pairs.

 

So, if you’re ready to go “all in” with the 10 Most Volatile Forex Pairs…

Let’s dive right in…

 

10 Best Forex Brokers in South Africa for 2025

Rank

Broker

Review

Regulators

Min Deposit

Official Site

#1

ASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSA

$100

#2

FSCA, CySEC, FCA, DFSA, FSA, CMA

$0

#3

CySEC, MWALI, FSCA

$25

#4

CySEC, FCA, FSA, FSCA

$100

#5

CBCS, CySEC, FCA, FSA, FSC, FSCA, CMA

$10

#6

CySEC, ASIC, FSA, BVI, FSCA

$25

#7

ASIC, CySEC, FSA, SCB

$200

#8

ASIC, CySEC, FSCA, FSA, FSC, CMA

$100

#9

FCA, CySEC, FSCA, SCB

$100

#10

FSCA, FSC, ASIC, CySEC, DFSA

$5

#1

4.8/5

User Score

#2

4.7/5

User Score

#3

4.7/5

User Score

#4

4.4/5

User Score

#5

4.7/5

User Score

#6

4.0/5

User Score

#7

4.7/5

User Score

#8

4.8/5

User Score

#9

4.5/5

User Score

#10

4.9/5

User Score

Most Volatile Currency Pairs

💱 Most Volatile Currency Pairs🔄Spread 📈Average Daily Range %📉Leverage💧Liquidity
🥇AUD/JPY1.5-2.52.5%500:1High
🥈NZD/JPY1.5-2.53.2%500:1Medium-High
🥉GBP/EUR2-31.8%200:1High
🥈CAD/JPY2-32.1%200:1Medium
🥉GBP/AUD2-42.4%400:1Medium-High
🥇USD/ZAR3-63.2%200:1Low-Medium
🥈USD/KRW2-43.8%200:1Low-Medium
🥉USD/BRL4-85.5%100:1Very Low
🥇USD/TRY5-104.2%50:1Very Low
🥇USD/MXN4-86.5%50:1Very Low

 

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.

Geopolitical events, economic data, and sentiment influence forex volatility, resulting in an intricate tapestry reflecting the global financial status quo.

Traders navigating these ebbs require analytical understanding and disciplined hazard protection strategies while monitoring this nuanced dance closely is crucial for triumphs amidst Forex’s turbulent waters.

 

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 - 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.

Contrariwise, the Japanese yen is widely considered to be a safe-haven currency, which means that investors often turn to it in times of economic adversity.

As a result, the price movements of this pair can be very dramatic depending on the current global economic outlook.

 

Here’s a comparison table for the AUD/JPY (Australian Dollar / Japanese Yen)

 

🌟 Feature📊Details
🔍Currency Pair AUD/JPY
🌎Country Australia / Japan
💹Current Exchange RateApprox. 80.00 (depends on market)
🔄Spread 1.5 - 2.5 pips
🤯Average Daily Range2.5%
📈LeverageUp to 500:1
💧LiquidityHigh
⚡Volatility Moderate to High
📉Major InfluencesInterest rates,
economic data,
Australian commodity prices,
geopolitical events
⏰Trading SessionsActive in Asian and Australian sessions
🕒Best Trading Times1 AM - 5 PM GMT
⚠️Potential RisksSudden shifts in central bank policies,
global economic events

 

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

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 for the NZD/JPY (New Zealand Dollar / Japanese Yen)

 

🌟 Feature📊Details
🔍Currency Pair NZD/JPY
🌎Country New Zealand Dollar / Japanese Yen
💹Current Exchange RateApprox. 70.00 (depends on market)
🔄Spread 1.5 - 2.5 pips
🤯Average Daily Range3.2%
📈LeverageUp to 500:1
💧LiquidityMedium-High
⚡Volatility High
📉Major InfluencesInterest rates, economic data,
dairy prices (NZD), Japanese inflation (JPY)
⏰Trading SessionsActive in Asian and Australian sessions
🕒Best Trading Times12 AM - 6 PM GMT
⚠️Potential RisksHighly correlated with AUD/JPY

 

3. GBP/EUR – British Pound / Euro

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 for the GBP/EUR (British Pound / Euro)

 

🌟 Feature📊Details
🔍Currency Pair GBP/EUR
🌎Country United Kingdom / Eurozone
💹Current Exchange RateApprox. 1.15 (depends on market)
🔄Spread 1.0 - 2.0 pips
🤯Average Daily Range1.5%
📈LeverageUp to 200:1
💧LiquidityHigh
⚡Volatility Moderate to High
📉Major InfluencesInterest rates,
economic data,
Brexit developments, inflation rates
⏰Trading SessionsActive in European and London sessions
🕒Best Trading Times8 AM - 4 PM GMT
⚠️Potential RisksModerately correlated with GBP/USD

 

4. CAD/JPY – Canadian Dollar / Japanese Yen

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 for the CAD/JPY (Canadian Dollar / Japanese Yen)

 

🌟 Feature📊Details
🔍Currency Pair CAD/JPY
🌎Country Canada / Japan
💹Current Exchange RateApprox. 88.00 (depends on market)
🔄Spread 1.0 - 2.0 pips
🤯Average Daily Range2.0%
📈LeverageUp to 200:1
💧LiquidityMedium to High
⚡Volatility Moderate
📉Major InfluencesOil prices,
interest rates, economic data,
global market sentiment
⏰Trading SessionsActive in Asian and North American sessions
🕒Best Trading Times12 AM - 8 PM GMT
🤝Correlation with other PairsModerately correlated with AUD/JPY

 

5. GBP/AUD – British Pound / Australian Dollar

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 for the GBP/AUD (British Pound / Australian Dollar)

 

🌟 Feature📊Details
🔍Currency Pair GBP/AUD
🌎Country United Kingdom / Australia
💹Current Exchange RateApprox. 1.85 (depends on market)
🔄Spread 1.0 - 2.5 pips
🤯Average Daily Range1.5%
📈LeverageUp to 200:1
💧LiquidityMedium to High
⚡Volatility Moderate to High
📉Major InfluencesInterest rates, commodity prices,
economic data, political events (e.g., Brexit)
⏰Trading SessionsActive in London and Asian sessions
🕒Best Trading Times8 AM - 4 PM GMT
🤝Correlation with other PairsModerately correlated with GBP/USD and AUD/USD

 

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

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 ZAR.

 

Here’s a comparison table for the USD/ZAR (US Dollar / South African Rand)

 

🌟 Feature📊Details
🔍Currency Pair USD/ZAR
🌎Country United States / South Africa
💹Current Exchange RateApprox. 17.50 (depends on market)
🔄Spread 10 - 50 pips
🤯Average Daily Range2.0%
📈LeverageUp to 200:1
💧LiquidityMedium
⚡Volatility High
📉Major InfluencesUS economy,
gold prices,
South African politics, emerging market sentiment
⏰Trading SessionsActive in New York and European sessions
🕒Best Trading Times9 AM - 4 PM GMT
🤝Correlation with other PairsHighly correlated with gold prices,
moderately correlated with EUR/USD

 

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

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 for the USD/KRW (US Dollar / South Korean Won)

 

🌟 Feature📊Details
🔍Currency Pair USD/KRW
🌎Country United States / South Korea
💹Current Exchange RateApprox. 1,300 (depends on market)
🔄Spread 5 - 15 pips
🤯Average Daily Range0.5%
📈LeverageUp to 200:1
💧LiquidityHigh
⚡Volatility Moderate to High
📉Major InfluencesUS economic data,
South Korean exports,
semiconductor prices, geopolitical tensions
⏰Trading SessionsActive in New York and Asian sessions
🕒Best Trading Times9 AM - 4 PM GMT
🤝Correlation with other PairsModerately correlated with USD/JPY and AUD/KRW

 

8. USD/BRL – US Dollar / Brazilian Real

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 for the USD/BRL (US Dollar / Brazilian Real)

 

🌟 Feature📊Details
🔍Currency Pair USD/BRL
🌎Country United States / Brazil
💹Current Exchange RateApprox. 5.30 (depends on market)
🔄Spread 10 - 30 pips
🤯Average Daily Range1.5%
📈LeverageUp to 100:1
💧LiquidityMedium to High
⚡Volatility High
📉Major InfluencesUS economic data, Brazilian commodity prices
(soybeans, iron ore),
political stability,
inflation
⏰Trading SessionsActive in New York and São Paulo sessions
🕒Best Trading Times10 AM - 4 PM GMT
🤝Correlation with other PairsModerate correlation with commodity currencies like AUD and CAD

 

9. USD/TRY – US Dollar / Turkish Lira

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 for the USD/TRY (US Dollar / Turkish Lira)

 

🌟 Feature📊Details
🔍Currency Pair USD/TRY
🌎Country United States / Turkey
💹Current Exchange RateApprox. 18.25 (depends on market)
🔄Spread 20 - 50 pips
🤯Average Daily Range2%
📈LeverageUp to 100:1
💧LiquidityMedium to Low
⚡Volatility Very High
📉Major InfluencesUS economic data, Turkish interest rates, Central Bank interventions, geopolitical tensions with neighboring countries
⏰Trading SessionsActive in New York and Istanbul sessions
🕒Best Trading Times12 AM - 6 PM GMT
🤝Correlation with other PairsModerate correlation with commodity currencies like AUD and CAD,
and with other emerging market currencies like ZAR

 

10. USD/MXN – US Dollar / Mexican Peso

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)

 

🌟 Feature📊Details
🔍Currency Pair USD/MXN
🌎Country United States / Mexico
💹Current Exchange RateApprox. 18.00 (depends on market)
🔄Spread 10 - 25 pips
🤯Average Daily Range1.5%
📈LeverageUp to 100:1
💧LiquidityHigh
⚡Volatility Moderate to High
📉Major InfluencesUS economic data, Mexican exports,
oil prices,
geopolitical events, trade agreements (e.g., USMCA)
⏰Trading SessionsActive in New York and Mexico City sessions
🕒Best Trading Times10 AM - 4 PM GMT
🤝Correlation with other PairsModerate correlation with commodity currencies like CAD,
risk-on/risk-off sentiment

 

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

💱 Criteria🌎 Explanation
📉 ATR (Average True Range)Measures the average movement in a pair's price over a period, higher ATR means higher volatility.
📅 Economic CalendarNews and economic events
(e.g., NFP, rate decisions)
often cause volatility in related currency pairs.
🌍 Political InstabilityCurrencies from politically volatile regions
(like TRY, ZAR) often see greater price swings.
💱 Commodity CorrelationPairs tied to commodities (e.g., AUD/USD, CAD/JPY) fluctuate with commodity prices like oil and gold.

 

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

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

 

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 about 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.

 

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

•  Exotics pairs – These contain one major currency and one from an emerging market

 

Before a trader enters their first trade, it’s important to learn about currency pairs and what they signify.

•  In the forex market, currencies always trade in pairs.

•  The forex market uses symbols to designate specific currency pairs. 

•  Each forex pair will have a market price associated with it.

 

What is Forex Trading in general?

 

The foreign exchange – FX or forex market is a global marketplace for exchanging national currencies against each other. 

Currencies trade against each other as exchange rate pairs.  

As with any financial market, the Forex market has a bid price, ask price, and spread.

This is the difference between the price at which a currency pair can be bought and sold. 

The largest stock market in the world, the New York Stock Exchange (NYSE), trades a volume of approximately $22.4 billion each day – The currency market is over 200 times Bigger! 

The forex market is open 24 hours a day and 5 days a week, only closing down during the weekend.

Approximately $5 trillion worth of forex transactions take place daily, an average of $220 billion per hour.

The market is largely made up of institutions, corporations, governments, and currency speculators. 

Trading accounts in South Africa can be opened for a small amount, but a minimum 200 USD deposit is advised because a trader’s account balance will determine how much leverage they can use.

When it comes to Forex trading, many different opinions are floating about.

People have been called crazy, with the sentiments being – “You will lose all of your money”, and “It is designed in a way that the brokers are the only ones who are getting rich with it”.

Of course, there is always a chance that traders will make unsuccessful trades and lose money, but Forex trading is not the same as gambling.

If a trader has enough knowledge, understand the market, and can implement strategies, they can master FX trading and become extremely successful.

Forex trading may be a risky business, South Africa included, and while Forex trading is not a successful path for everyone, anyone can reach success in it.

  South Africa is a great example when it comes to the popularity of Forex trading.

 

Worldwide Forex Market Hours 

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:

•  London: 3 a.m. to 12 p.m.

•  New York: 8 a.m. to 5 p.m.

•  Sydney: 5 p.m. to 2 a.m.

•  Tokyo: 7 p.m. to 4 a.m.

 

While each exchange functions independently, all trade the same currencies.

Therefore, when two exchanges are open, the number of traders actively buying and selling a certain currency will dramatically increase.

The bids and asks in one forex market exchange immediately impact bids and asks on all others, reducing market spreads and increasing volatility.

The most favorable trading time is the 8 a.m. to noon overlap of the New York and London exchanges and from 5 p.m. to 6 p.m. in the Singapore and Sydney exchanges, where there is far less volume than during the London/New York window.

Traders must remember – High Volume Forex Trading Hours Don’t Guarantee Profits

 

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. 

When traders say that the market is highly volatile this means that currency quotations change drastically during a trading session. 

For example, if it’s too high, they try to reduce the volume of their transactions. 

At first glance, volatility seems like a bad thing, but it’s not, in fact, the higher it is, the larger the potential earnings, (and losses), in the Forex market.

 

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.

 

Stable and Volatile Currencies

 

While volatility patterns may change at any time some Forex Currency Pairs have gained a reputation for showing greater stability over time – including:

 

•  Norwegian krone

•  Singapore dollar

•  New Zealand dollar

•  Hong Kong dollar

•  Swiss franc

 

The governments that back these currencies have developed reputations for maintaining sound public sector accounts and limited intrusion in market affairs. 

There are also major heavy-duty currencies that are viewed to maintain general long-term stability, including –

 

•  US Dollar

•  Euro

•  British pound

•  Chinese renminbi

•  Japanese yen

 

However, these are contrasted by the volatility of some major emerging market currencies, which have been more powerfully affected by local policy shifts and global supply and demand factors. These include:

 

•  Brazilian real

•  Russian ruble

•  Mexican peso

•  Argentine peso

 

Key factors that affect Volatility

 

Many factors impact the market and affect its volatility including:

 

•  Traders must stay up to date with all the latest forex news, forex pair prices, and analysis

•  Any type of release of data can impact the volatility of currency pairs.

•  Technical analysis helps the traders with measuring volatility.

•  Geopolitical Events can have a major impact.

 

Apart from these factors, a forex trader must keep in mind what is happening around the world which could have massive impacts on volatility.

 

Factors that affect the price of Forex pairs.

The value of a currency will be determined by the financial health of the country, for example, The dollar Yen will be determined by The United States and Japan. 

The market reacts to economic reports released by governments, central banks, or organizations because they give a clear insight into how a nation’s economy performs and help them compare one country’s economic health against others.

 

Most volatile forex pairs

 

Currency pairs differ in terms of volatility levels and traders can decide to trade high-volatile pairs or pairs with lower volatility.

The volatility of a currency pair shows price movements during a specific period. Smaller price movements will indicate lower volatility whereas higher or more frequent movements mean higher volatility.

The price movement of the currency pair is commonly considered in terms of pips, so if a currency pair moves by 200 pips on average during a certain period it will be more volatile than a pair moving 20 pips in the same period.

A volatility level is affected by major economic data releases, political events, liquidity, or simple supply and demand.

The volatility of a currency pair can change over time as factors change.

 

Most volatile currency pairs include:

(to be looked at in more detail later in the article)

 

•  AUD/USD

•  GBP/AUD

•  AUD/JPY

•  CAD/JPY

•  USD/TRY

 

Least volatile currency pairs

 

•  EUR/USD

•  EUR/GBP

•  USD/CHF

•  EUR/CHF

 

Exotic currency pairs are considered to be more volatile because of limited liquidity and unstable economic conditions in emerging economies.

 

In Conclusion

Forex is the largest and most volatile market in the world with hundreds of currency combinations to choose from. 

Volatile currency pairs can offer opportunities for quick profits but, these ‘quick’ profits sometimes come with an increased degree of risk. 

In the end, the forex market is full of irregularities and it is very important to keep a close eye on the market determinants and indicators that measure the volatility, according to research in South Africa.

In general, volatile pairs are affected by the same drivers as their less-volatile counterparts, which can include interest rate differentials, geopolitics, the perceived economic strength of each currency’s issuing country, and the value of these nations’ imports and exports. 

Traders must remember that volatile currency pairs often have lower levels of liquidity than their less-volatile counterparts.

A well-thought-out trading plan and risk management strategy is key when taking on the Foreign Exchange Market

In Fact – The Forex Market is among if not the most liquid market in the world.

 

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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.

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Table of Contents

Written by:

Louis Schoeman

Edited by:

Skerdian Meta

Fact checked by:

Arslan Butt

Updated:

February 16, 2025

Written by:

Louis Schoeman

Featured SA Shares Writer and Forex Analyst.

I am an expert in brokerage safety, adept at spotting scam brokers in mere seconds. My guidance, rooted in my firsthand experience with brokers and an in-depth understanding of the regulatory framework, has safeguarded hundreds of users from fraudulent brokerage activities.

Edited by:

Skerdian Meta

Leading Analyst

Skerdian Meta FXL’s Heading Analyst is a professional Forex trader and market analyst and has been actively engaged in market analysis for the past 10 years. Before becoming our leading analyst, Skerdian served as a trader and market analyst at Saxo Bank’s local branch, Aksioner, the forex division and traded small investor’s funds for two years.

Fact checked by:

Arslan Butt

Commodities & Indices Analyst

Arslan Butt, a financial expert with an MBA in Behavioral Finance, leads commodities and indices analysis. His experience as a senior analyst and market knowledge (including day trading) fuel his insightful work on cryptocurrency and forex markets, published in respected outlets like ForexCrunch.

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