Community Forex Questions
Which are the most volatile currency pairs?
The most volatile currency pairs in the foreign exchange market are those that exhibit substantial price fluctuations over short periods. These pairs are characterized by high trading volumes, increased market sensitivity, and geopolitical influences. Among the most notable volatile currency pairs are GBP/JPY, EUR/JPY, and GBP/USD.
GBP/JPY, also known as "The Dragon," showcases significant volatility due to the inherent nature of the British Pound and Japanese Yen, which are both influenced by geopolitical events and economic data releases.
EUR/JPY, known as the "Yuppy," experiences high volatility because it combines the Euro, representing multiple European economies, and the Japanese Yen, subject to global market sentiment.
GBP/USD, or "Cable," is notorious for its volatility as it involves the British Pound and the US Dollar, both powerful currencies influenced by economic indicators, political developments, and global economic trends.
Traders seeking profit opportunities in turbulent markets often turn to these currency pairs but must also be aware of the inherent risks associated with such high volatility.
GBP/JPY, also known as "The Dragon," showcases significant volatility due to the inherent nature of the British Pound and Japanese Yen, which are both influenced by geopolitical events and economic data releases.
EUR/JPY, known as the "Yuppy," experiences high volatility because it combines the Euro, representing multiple European economies, and the Japanese Yen, subject to global market sentiment.
GBP/USD, or "Cable," is notorious for its volatility as it involves the British Pound and the US Dollar, both powerful currencies influenced by economic indicators, political developments, and global economic trends.
Traders seeking profit opportunities in turbulent markets often turn to these currency pairs but must also be aware of the inherent risks associated with such high volatility.
Jul 18, 2023 14:17