Top 8 Most Volatile Currency Pairs in FOREX Trading

Are you interested in FX trading? Do you already have a currency pair that you want to trade in mind? If so, you need to know if it is easily subjected to volatility as it is considered as the most vital factor to be considered when trading Forex.

Choosing the currency pair to trade is considered as the most important decision that you will ever make as a Forex trader. There is no such thing as right or wrong on this, however, you need to be careful about the decision that you will make as it will greatly influence the strategy that you will use in your risk management.

One important factor that needs to be considered when you choose a currency pair is the volatility. Though it is good to say that the Forex market is highly liquid and has the lowest level of volatility, there are instances in which a certain pair appears to be more volatile than others. To help you decide on which currency pair to trade, check out these most volatile currency pairs.

Most Volatile Currency Pairs


The currency pair US dollar and South Korean won both have a very high inflated exchange rate. This has made fluctuations in this pair, very common. There are a lot of investors who consider this pair an easy win.

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Brazilian Real (BRL) happens to be an exotic currency. This means that it is from an emerging market. These kinds of currencies are known to be highly volatile which means that any currency paired to it will also become volatile.


Another well-known volatile currency pair is the Australian Dollar and the Japanese Yen. It is known that commodity currencies are highly volatile because the export value can quickly and easily change due to some external factors.


Similar to AUD/JPY, the relationship of these two currencies, New Zealand and Japanese Yen are volatile since NZD is known as a commodity currency. Its value is subjected to the exports of eggs, dairy products, meat, honey, and wood. By the time these products have drastic changes in their value, the volatility levels are also affected.


The Great British Pound and Euro are actually not historically known as the most volatile currency pairs. However, with Brexit in 2016, the currency pair became highly volatile. The leaving of the European Union has greatly affected the economy of Britain.


Another commodity currency on the list, the Canadian Dollar and Japanese yen is yet another pair with high volatility. CAD is a commodity pair and its volatility is particularly linked to the oil price.

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Similar to GBP/EUR, this currency pair has long had a stable relationship. But the trade war between the US and China affected the volatility of this currency pair.

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The USD and South African rand is also known to be a volatile currency pair in FX trading. The reason behind its high volatility is because South Africa is one of the main exporters of gold in the whole world.

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