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5 highly volatile currency pairs


5th Apr 2021 Down to Business

5 highly volatile currency pairs

What are currency pairs?


A currency pair on Invcenter is actually a quotation of 2 different currencies in which the value of one currency is quoted against the other currency. The first currency in the list is called the Base currency and the currency which is quoted against the first currency or the second currency is called the Quote currency.

It is a measure of comparison of one currency with respect to the other. It helps you to get the value of quote currency required to get one unit of the base currency. In a currency pair it is represented by the ISO currency code as for example we use USD for the US Dollar.


We usually trade the currency pairs in the Forex trading maret. It allows you to buy and sell currency. The major currency pair is EUR/USD. It is the most liquid pair and the most important one. Here we are to talk about the most volatile currency pair.


Now, the question may arise what is volatility of the Currency pair? The volatility of the Currency pair is actually the volatility of the foreign market exchange or Forex trading market which is the uncertain fluctuations in the exchange rates of the currency. It can give you high profits and also heavy losses. Lower liquidity value results in high and drastic volatility and this happens because the currency of any country is controlled by multiple economic, political and social events taking place around the globe.


The highly volatile currency pairs




It is the currency pair of Australian dollar against the Japanese Yen. It is extremely at risk and is one of the most correlated pairs prone to high volatility.  It has an inverse relationship and AUD is highly related to the exports in Australia. Japanese Yen has a safe haven. The huge difference between the two results in the high volatility of the currency pair.




This is the currency pair of New Zealand Dollar (NZD) and Japanese Yen (JPY). The New Zealand dollar is a commodity currency which heavily depends on the country’s exports, agriculture and many more. Whereas Japanese Yen is a safe haven. The total opposite behaviour causes the extreme volatility in this currency pair.




This currency pair is extremely popular and traded mostly. AUD/USD is the Australian Dollar against the US Dollar. You will find multiple trading charts showing the variations and fluctuations. AUD as we know is a commodity currency and hence its volatility is maximum. USD on the other hand is considered a safe haven and is the most popular trading currency.




This currency pair refers to two different currencies Canadian Dollar and Japanese Yen. This pair is highly volatile and greatly affected by the market changes. Canadian Dollar is greatly affected by the oil prices and Japanese Yen is a safe haven. So, there lies the concept of volatility.




It is called the Forex ticker and the currency pairs are British Pound and Australian Dollar. Australian dollar as we know is a commodity currency and it fluctuates easily based on the country’s exports, agriculture and multiple other factors, which contributes to the volatility. It has huge volatility and is one of the most volatile currency pairs.




Consideration of the volatility is utmost important and you need to check for the volatility in the market before trading the currency. Because volatility can even incur huge losses and cause extensive disruption for you. Minimizing trade or minimizing the position while trading highly volatile pairs may contribute to the reduced risk in the Forex trading market. Due to extensive volatility these currency pairs make huge leaps and thus keep the points in mind before trading! All the best.

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