Top 10 most volatile currency pairs

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Top 10 Most Volatile Currency Pairs and How to
Trade Them

• Presented by

The Forex Secret
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Introduction
The most volatile currency pairs offer enticing
prospects for profit because their price
movements can be more dramatic than less volatile
pairs. 

• Volatile pairs are affected by the same drivers
  as their less-volatile counterparts.
• Volatile currency pairs often have lower levels
  of liquidity than their less-volatile
  counterparts.
• A well-thought-out trading plan and risk
  management strategy in place, there is little to
  fear from volatile currency pairs.

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List of Volatile Forex Pairs

• AUD/JPY

• USD/JAR

• NZD/JPY

• USD/KRW

• GBP/EUR

• USD/TRY

• CAD/JPY

• USD/BRL

• GBP/AUD

• USD/MXN

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AUD/JPY

• The Australian dollar is a commodity currency,
  meaning that its price is heavily linked to the
  price and volume of Australias exports
• Japanese yen is widely considered to be a
  safe-haven currency, meaning that investors often
  turn to it in times of economic hardship
• The price movements of this pair can be very
  dramatic depending on the current global economic
  outlook.

Inverse relationship between the Australian
dollar and Japanese yen.
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NZD/JPY

• New Zealand dollar is a commodity currency and
  its value is closely tied to the price of New
  Zealands agricultural exports
• Some of the top exports from New Zealand are
  dairy, eggs, meat, wood and honey.
• As a result, any changes in the price of any of
  these markets will affect NZDs value against the
  Japanese yen.

Pairing of the New Zealand dollar against the
Japanese yen.
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GBP/EUR
Matching of the British pound against the euro
and, following Brexit

• This pair has seen constant volatility.
• This is particularly true around any key policy
  announcements, or any crucial votes in the House
  of Commons.

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CAD/JPY

• The yen is seen as a safe haven, and the Canadian
  dollar is a commodity currency
• Japan is a top importer of oil, which means that
  as the price of oil increases, the cost of buying
  Canadian dollars with yen also tends to increase.
  
• This is because as oil prices rise, more yen must
  be converted into CAD to buy a single barrel of
  oil, with this increase causing the price of
  CAD/JPY to rise.

Pairing of the New Zealand dollar against the
Japanese yen.
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GBP/AUD

• A knock-on effect of the US's trade war with
  China has been that Australian imports to the
  Chinese markets have fallen.
• Since China is one of Australias main trading
  partners, this does not bode well for Australian
  manufacturers and exporters, rely on strong trade
  links with China to maximise their profits.
• As a result, currency pairs which contain AUD
  have seen increased volatility since the start of
  the trade war.

Pair is comprised of the British pound and the
Australian dollar.
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USD/ZAR

• Volatility in this pair is greatly affected by
  the price of gold.
• Because gold is one of South Africas 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.

Sets the US dollar against the South African rand
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USD/KRW

• The South Korean won, in its current form, was
  formed after the separation of the Korean
  peninsula into two separate parts following the
  Second World War..
• Following the separation, the South allied with
  America and the North allied with Russia.
• As a result, the economic disparities of
  capitalism and communism started to become
  apparent and can still be seen on the peninsula
  today.

Pair is the US dollar against the South Korean
won.
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USD/BRL

• This pair enjoys frequent price movements,
  creating opportunities for traders who focus on
  day trading or even scalping.
• As an emerging market, Brazil is an exciting
  economy for those seeking to capitalise on the
  forecasted future development of the South
  American country.
• However, politics in Brazil has been unstable at
  times, with corruption dominating headlines in
  the last decade or so.

Pair is the US dollar against the Brazilian real.
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USD/TRY

• TRY has been highly volatile since 2016 following
  a failed coup d'état and the subsequent purges
  that have been taking place in Turkish society.
• Turkish politics remains highly unstable, with
  many still supporting the Peace at Home Council
• Because of the uncertainty surrounding the
  current outlook for the lira, USD/TRY is a key
  pair to watch for any forex traders seeking a
  highly volatile pair

Encompasses the US dollar and the Turkish lira
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USD/MXN

• A series of tariffs have been implemented on
  Mexican exports to the US, as well as a series of
  threats against Mexican immigrants trying to get
  into the US via its southern border.
• The current tariff rate of 20 has already caused
  volatility in this pair to increase, with
  announcements surrounding the immigration
  policies of the Trump administration tending to
  have an adverse effect on the peso.

Puts the US dollar against the Mexican peso
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How to Trade Forex Volatility

• Research which forex pair you want to trade
• Carry out analysis on that forex pair, both
  technical and fundamental
• Choose a forex trading strategy and check youre
  comfortable with your exposure to risk
• Create an account and deposit funds
• Open, monitor and close your first position

Five simple steps
Two of the most popular ways to trade forex
volatility or volatility in general is by
opening a CFD or spread betting account.
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THANKS FOR YOUR INTEREST