Top 8 Most Volatile Currency Pairs in FX Trading

Top 8 Most Volatile Currency Pairs in FX Trading

Are you interested in FX trading? Do you already have a currency pair in mind that you want to trade? If so, you should find out if it is prone to volatility, as this is regarded as the most important factor to consider when trading Forex.

Choosing the currency pair to trade is regarded as the most important decision a Forex trader will ever make. There is no such thing as right or wrong in this case; however, you must exercise caution in making your decision because it will have a significant impact on the risk management strategy that you will employ.

The volatility of a currency pair is an important factor to consider when selecting a currency pair. Though it is true that the Forex market is highly liquid and has the lowest volatility, there are times when one pair appears to be more volatile than others. Check out these most volatile currency pairs to help you decide which currency pair to trade.

Currency Pairs with the Highest Volatility


Both the US dollar and the South Korean won have extremely inflated exchange rates. This has resulted in frequent fluctuations in this pair. Many investors believe that this pair is a sure bet.


The Brazilian Real (BRL) is a unique currency. This indicates that it is from a developing market. These currencies are known to be highly volatile, which means that any currency paired with them will become volatile as well.


The Australian Dollar and the Japanese Yen are another well-known volatile currency pair. Commodity currencies are known to be highly volatile because the export value can change quickly and easily due to external factors.


The relationship between New Zealand and the Japanese Yen is volatile, as it is with AUD/JPY because NZD is a commodity currency.

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Its worth is determined by exports of eggs, dairy products, meat, honey, and wood. When the value of these products fluctuates dramatically, the volatility levels fluctuate as well.


Historically, the Great British Pound and the Euro have not been the most volatile currency pairs. However, following the Brexit vote in 2016, the currency pair became extremely volatile. The British economy has suffered greatly as a result of the country’s exit from the European Union.


Another commodity currency on the list, the Canadian Dollar and Japanese yen is a volatile pair. CAD is a commodity pair, and its volatility is closely related to the price of oil.


This currency pair, like GBP/EUR, has a long history of stability. However, the trade war between the United States and China has influenced the volatility of this currency pair.


In FX trading, the USD and South African rand are also known to be volatile currency pairs. The reason for its high volatility is that South Africa is one of the world’s largest gold exporters.


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