Which Forex pairs are the most volatile? Which Forex pairs should you be looking for right now?
I said, looking at it because I am NOT saying you should trade. These particular pairs are riskier than the main currency pairs, but you should really look at these pairs. The most volatile currency pairs can actually offer more lucrative trading opportunities for forex traders.
- Super fast movements
- Find the right timing and join an ultimate pip ride
- Have a look at the GBP pairs
- Look further than just the main currency pairs
- Why you should look at the exotics
- Higher and frequent movements give higher volatility
- Real examples of volatile moves
- #1: Volatile example with GBPUSD
- #2: Quick pips with the GBPCHF
- #3: Make some fast money with the GBPJPY
- #4: I made 194 Pips with GBPAUD in a few hours
- #5: Quick dive down 115 Pips with the AUDUSD
- #6: 101 Pips on 8 bars with AUDJPY
- #7: Double opportunities with CADJPY
- #8: Amazing profits with the USDNOK
- #9: Quick trade with USDZAR
- #10: How to make 6209 Pips with USDMXN in just 5 hours!
Super fast movements
Did you know the most volatile Forex pairs can move on average for more than 400 points per day? Wouldn’t that be amazing to take advantage of these pairs when they really are moving?
If you are looking for Forex pairs that move, you probably have experienced it where you place a trade, and you have to wait a very long time before you start seeing any meaningful movement or meaningful profit with them.
Find the right timing and join an ultimate pip ride
There’s just one thing that is very common… I promise you when they decide to move, they really move. Sometimes they do not do anything. Sometimes they are just waiting, but when they take off they really take off. So if you are looking to make those fast pips those quick profits, you need to find the perfect timing to enter your trades.
Have a look at the GBP pairs
Looking for movement, you should be looking at the GBP pairs. My experience is that this is where the best action is in the entire forex market. I’m, not saying in which exact pair, but there will be your super trade when the GBP pairs decide to be taken off, they know when they decide to give you money when they decide to give you those peeps. I promise you the GBP pairs, they gonna move.
Look further than just the main currency pairs
Then we have the exotic currency pairs. Most people seem to focus on the main currency pairs for their forex trading. It’s easy to forget completely about the exotic pairs.
If you are looking for movement, if you are looking for Forex pairs to squeeze, then I think you should also look at the exotics. They move when these things decide to move. They simply take off.
The most volatile currency pairs offer enticing prospects for profit because their price movements can be more dramatic than less volatile pairs. However, while increased volatility may offer more scope to realize a profit, it can also increase a trader’s exposure to risk.
Why you should look at the exotics
Exotic currency pairs are considered more volatile because of limited liquidity, along with unstable economic conditions in emerging economies. So exotic currency pairs have, on average, much higher price fluctuations compared with cross pairs or majors.
Higher and frequent movements give higher volatility
Currency pairs differ in terms of volatility levels and you 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. Volatility is actually explained very well on currency.com:
Smaller price movements will indicate lower volatility whereas higher or frequent movements mean higher volatility.
The price movement of the currency pair is commonly considered in terms of pips, so a currency pair moving 500 pips on average during a given period will be more volatile than a pair moving 50 pips in the same period. The volatility level is affected by major economic data releases and political events, as well as liquidity or simply supply and demand for the pair.
Volatility is a term used to refer to the fluctuations in price over time. The more price fluctuates, the higher the volatility is considered to be. With the tool below, you will be able to determine which pairs are the most volatile. You can also see which are the most and least volatile hours of the week, days, and months for specific pairs. Source: Babypips
Remember that the volatility of a currency pair can change over time as the relevant factors change. But overall, the pairs below are considered some of the most volatile and least volatile.
Real examples of volatile moves
So we are quickly going to go onto the charts and see what you can expect when these Forex pairs decide to move.
They can give you hundreds over a hundred fifty over two hundred pips with just a few candles. So let’s look at some of these pairs.
#1: Volatile example with GBPUSD
Let’s start with GBPUSD, I think it doesn’t move as much as other GBP pairs, but it also has some good times.
For example, here we got 111 Pips with just 9 bars. It goes that quick when it decides, and this happened on the 30th of September. It takes off, and if you’re on the good side of this trade, you really can milk it!
Worth to know about GBP USD:
- Financial news events bring two main advantages to trading the British pound: an obvious trend and increased liquidity.
- The announcement of interest rates by the central banks, usually at regularly fixed times, also has a strong influence on exchange rates.
- Stock exchange opening hours and price actions can have a significant impact on the British pound.
- Most of the monthly economic data from the United Kingdom comes out between 2 and 4:30 a.m. on Eastern Time in the United States, so this is a good time to trade.
When to trade the GBP pairs?
Most of the GBP traders’ schedules strictly follow exchange hours, with most of their trading occurring when Frankfurt and New York equity markets are open. Trading volume is increased around midnight on the U.S. East Coast, continuing through the night and into the American lunch hour when forex trading activity can drop significantly.
#2: Quick pips with the GBPCHF
Let’s have a look at another currency pair. This time with The British Pound vs. Swiss Franc cross, one of the most volatile forex pairs. Look at these 4 bars. You get 116 pips. This is going super fast when it already has decided.
The GBPCHF is a lower volatility pair that is tempered by the currencies’ economic and geographic proximity, according to TradingView. The GBP is one of the premier reserve currencies and represents the world’s largest financial center.
In turn, the CHF is used as a reserve currency around the world and is currently ranked rarely 5th or 6th in value held as reserves after the United States dollar, the euro, the Japanese yen, the pound sterling, and the Canadian dollar.
#3: Make some fast money with the GBPJPY
Taking off better, be ready, GBPJPY, many traders love this one. GBPJPY cough candles paid in candles. You get 158 pips, All you need to do is to get in, get out. Notice there are only 6 bars and 3 hours to fulfill this amazing trade that happened on the 1st of October.
The GBPJPY currency cross is one of the most volatile currency pairs out there, according to The Balance, and false signals are not uncommon. If ever there was a pair that teaches lessons in trading quickly, GBP/JPY would be it. There are even Geppy blogs fully dedicated to telling tales of its moves.
#4: I made 194 Pips with GBPAUD in a few hours
Well, you will make you target The British Pound vs. the Australian Dollar., yeah lighting candles you easily get 194 pips like it decides, and only 11 bars. Get ready for a real take-off! It’s happening quickly!
Due to its relatively higher interest rates and its correlation to global equity markets, the GBPAUD is often referred to as a risk currency pair. Mining, which is Australia’s largest economic sector, has been negatively affected by a slowdown in the global commodity supercycle and a decline in China’s growth, according to TradingView.
#5: Quick dive down 115 Pips with the AUDUSD
AUDUSD moved 115 Pips on 10 bars on the 21. September. This took only 10 hours!
If you are looking for one of the most frequently traded currency pairs in the world, then you should pay attention to the AUDUSD (Australian Dollar – US Dollar) according to DailyFX. The AUDUSD rate, as shown in the real-time price chart, tells traders how many US Dollars are needed to buy a single Australian Dollar. Follow the AUDUSD live with the interactive chart and read the latest forecast and AUD/USD news to boost your technical and fundamental analysis when trading this pair.
#6: 101 Pips on 8 bars with AUDJPY
AUDJPY is another volatile pair, and if you can catch the trend at the right time, you can easily make money. It took 8 hours to make 101 Pips with AUDJPY on the 21st of September. All it required was 8 bars!
#7: Double opportunities with CADJPY
CADJPY offered us a double opportunity to make some quick Pips! First, it went bearish, and you could make 106 Pips on 14 bars. Then it went bullish and you could make 92 Pips on 10 bars.
When a trader is unsure about trading the US Dollar, The Canadian Dollar vs. the Japanese Yen is often determined to be a suitable replacement, according to TradingView.
However, the historically higher yield of the Canadian dollar in the past has made the CADJPY more sensitive to market-wide sentiment changes than the USDJPY. Also, Canada’s large amount of energy exports, most notable oil, causes it to be affected by crude oil prices.
#8: Amazing profits with the USDNOK
I’m still on the hourly chart. But the next example is amazing. In just 9 hours, the USDNOK moves up +1507 Pips! We talk about only 10 bars! This is a good example of another volatile currency pair. It doesn’t happen every time, and you need to join the party when it happens!
If you are looking for Forex pairs with good return, USDNOK can be a profitable investment option, according to WalletInvestor.
USDNOK is the financial symbol that refers to the spot exchange rate of the US dollar and the Norwegian Krone.
It has been managed by its central bank called the Norges Bank. Just like any currency, the USDNOK rate tends to be sensitive to central bank announcements as well as to economic data. Norway is known to have one of the most stable economies in Europe. Source: Investingcube
#9: Quick trade with USDZAR
Have a look at USDZAR on the 1h chart. Between 10 am and 5 pm we were able to catch 3783 Pips, and it only required 8 bars!
USD/ZAR sets the US dollar against the South African rand. Volatility in this pair is greatly affected by the price of gold. This is because gold is one of South Africa’s main exports, and gold is priced in US dollars on the world market – which means that the price of gold is strongly correlated with the strength or weakness of USD.
As a result, if the price of gold is rising, the price of the dollar will likely also increase against ZAR. This is good for South African exporters because it means that they will get more US dollars for their gold on the world markets. Source: IG
#10: How to make 6209 Pips with USDMXN in just 5 hours!
The 9th most traded currency pair on the international forex market, USD to MXN provides a high level of liquidity.
Mexico’s deep economic transformation from the 1980s onwards has led the peso to become a higher-yielding currency that creates enticing opportunities for achieving returns during times of economic stability and uplift.
As neighboring nations with a large shared border, Mexico and the USA enjoy close trade and economic relations. This has been underpinned by the signing of the North America Free Trade Agreement in 1994, which saw all tariffs between the two nations eliminated.
As of 2017, 80% of Mexico’s exports were to the USA – with Mexico the USA’s second-largest export market. The high-yielding nature of the Mexican Peso makes it one of the ideal carry trading currencies. Source: Oanda
Volatile currency pairs can offer many opportunities for profit, and my suggestion is probably to go for those pairs above, but there are many other pairs that you can say. They don’t do this fast, but they do move.
If you are looking for volatile trends in the market right now, check out our today’s most volatile currency pairs.
I hope this helps you. If you want to get in quickly into the market, grab those pips and run over the GBP pairs or find some exotics… What’s important is you have a good strategy in place.