Top Volatile Currency Pairs in 2025

If you haven’t checked my previous article, I recommend you read that first, as that sets the base for this article as a continuation.

I explained trading styles in more detail in that post, including the most volatile and traded currency pairs. I don’t want to repeat myself and want to make this article more relevant to the current markets. The previous post shows the most traded and volatile pairs of 2023, so it’s been almost 2 years. Things have changed, so we must adapt to the current markets. You can view that post below:

Most volatile Currency Pairs of 2023

Read it? Okay, let’s move on.

You can check out this page on my FX book, which shares data on all pairs and how much they move from 1 minute to monthly average. You can also filter it out and select only relevant pairs that apply to you.

MyFxbook Volatility Filter

Cover 1The Exotic pairs, without doubt, are the most volatile currency pairs. However, we don’t trade these, and as a retail trader, I recommend you don’t, as they are not liquid and are affected by geopolitical events. Low-liquidity pairs like USD/TRY or USD/ZAR are more volatile due to limited market participants, leading to larger price swings, especially during off-peak trading hours. Spread on these are also horrendous. High-liquidity pairs are generally more stable.

Elections, conflicts, politics and trade tensions create uncertainty, driving market volatility are some of the other reasons why not to trade these pairs.

The best advice I can give you is to trade pairs that you are familiar with. This could be your country’s own currency or any liquid major pair. They are much safer, have better spreads and are more predictable. Also, information on those pairs is easily accessible. If I compare that to China, Brazil or Turkey, you will probably find it harder to get information on those currencies from a reliable source, as they don’t share everything on what is happening in their countries and have the power to share what they want to the rest of the world.

When I wrote the previous post, we were in Biden markets. The currency pairs were not the most volatile, but they were somewhat more predictable, as Biden wouldn’t do much. So forward orders were working for us, and we could peacefully just place them and forget about it.

Since Trump came into power, the market has been very volatile as he is unpredictable and can say anything at any minute. We had a major structure shift, and the charts have been all over the place, making it tougher just to add forward orders, as fundamentals are changing quickly. It’s not that the M2 strategy is not working; it’s just that we are in extraordinary times, and we have to adapt the strategy to these markets. If you can’t do that, then I’m sorry, but this is how you survive in trading. The same pattern won’t work every year, the market changes and has its seasons, and we have to be able to adapt to these conditions. Just like in the ocean, a sailor must keep an eye on the forecast and ensure he doesn’t sail into bad weather, so he navigates around it.

Remember Marc saying he used to trade the London breakout many years back? That worked for a while, and it was easy money. Then it stopped, and he had to go back to longer timeframes again. We are in the same situation right now.

Back to the topic

📈 Factors Contributing to Volatility in 2025

  • Geopolitical Tensions: Conflicts and political instability in various regions have led to increased uncertainty in currency markets.

  • Monetary Policy Shifts: Diverging interest rate decisions by central banks have caused significant currency movements.

  • Commodity Price Fluctuations: Changes in commodity prices have particularly impacted currencies of countries reliant on commodity exports.

  • Trade Negotiations: Ongoing trade discussions and tariff changes have influenced currency valuations, especially in emerging markets.
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Here are some of the volatile currency pairs of 2025 that are familiar to us:

GBPJPY: 190 PIP average , GBPAUD: 230 PIP average, GBPNZD: 220 PIP average, AUDJPY: 140 pip average, EURJPY: 140 PIP average, CADJPY: 130 PIP average, USDJPY: 190 PIP average and also EURAUD and EURNZD which do about 220 pips on average.

Kind regards,

Ashley

References:

Religareonline

vtmarkets