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5 Most Volatile Currency Pairs and the Best Way to Trade Them

by Sahabat Artikel

5 most volatile currency pairs and the best way to trade them. When you learn Forex market, volatility is surely an important thing to take into account. When there are countless currency pairs being traded in the market, most traders are likely to fit their tactics to take advantage of most volatile currency pairs. In this article, we are going to find out about some of the most volatile currency pairs that you need to know. 

Top 5 Most Volatile Currency Pairs and How to Trade Them

Volatility, commonly calculated utilizing the standard variance or deviation of a currency, provides traders an anticipation of how much a currency is able to deviate from its recent price over a particular period. Here, remember that every currency pair has unique volatilities. If you are interested to trade on most volatile currency pairs, here are the top five currency pairs with high volatility.


The currency pair of AUD, Australian Dollar against Japanese Yen (JPY) is known as the most volatile currency pair in the market. It is also known as an appealing pair for its relationship to risk. For your information, this pair is frequently among one of the pairs which is highly correlated to price action in the equities of US on a short to medium basis. 


The NZD (New Zealand Dollar) against the JPY (Japanese Yen) pair is the next currency pair which is very volatile in the Forex market. As you might ever hear, the JPY is a currency which is historically low-yielding, making it an appealing medium to fund carry trades. When it comes to NZD/JYP, it is also known to have high response to the economic news. 


In the top three most volatile currency pairs is the AUD/USD. The currency of Australian Dollar against US Dollar has become a popular currency pair traded in the Forex market. After years, traders were frequently attracted by this pair’s differential of the interest rate. This condition makes traders able to earn rollover for being long this pair while taking advantage from this pair.


Next, there is also Canadian Dollar (CAD) against the Japanese Yen (JPY) which has most volatile in the Forex market. This currency pair is considered as the strong alternative for the USD/JPY currency pair. Nevertheless, this currency pair is traditionally more sensitive to changes particularly in market-wide sentiment compared to the USD/JPY because of the previously higher yield connected to Canadian Dollar.


When it comes to this pair, it actually displays how many AUD are required to buy one GBP or British Pound. As one of the most volatile pair, the AUD is usually referred to high risk currency because of its moderately higher interest rates and association to world equity markets. However, if you tend to trade in high volatility currency, you can consider this one.

Other Highly Volatile Currency Pairs Nowadays

Those are the five most volatile currency pairs in the Forex market with the major currency pairs like AUD/JPY, AUD/USD and NZD/JPY as the most volatile one these days. In addition to the major currencies above, there are also some emerging market currencies such as USD/BRL, USD/KRW and USD/ZAR which are likely to be greatly volatile because of their low liquidity. 

The Bottom Line

Now that you have known some of the most volatile currency pairs in the market, you can use this knowledge to create a good Forex strategy later on. If you still need to improve your skills in creating the best strategy to trade in the foreign exchange market, don’t hesitate to learn Forex for more in various resources available out there. Therefore, keep upgrading yourself!



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