If you compare the forex market with the stock market, you will see Forex market is way more volatile than the stock market. Because of this volatility, making profits or losing money with the forex market is much easier.

To succeed in the forex market, you must be consistent and patient and have the right strategies. Choosing the correct currency pairs to trade is most important because forex pairs tend to affect a trader’s trading strategy and risk management.

There are a few factors to consider when choosing currency pairs to trade, such as volatility. Currency pairs don’t all have the same price fluctuations; some are considered to be more volatile than others. Forex pairs with the highest volatility can either give you more profits or more losses. It is, therefore, crucial to pick them carefully.

In this article, we will discuss 3 volatile forex currency pairs that are also safe to trade.

AUD/JPY

The Australian dollar is the most volatile forex pair in this list due to its sensitivity to market movements. Being a commodity currency, the Australian dollar fluctuates wildly despite its high demand. Australia’s exports, especially metals, minerals, and agriculture products, determine its price.

During times of hardship, investors turn to the Japanese yen as a safe-haven currency. For the AUD, this is not true, and as a result, global economic changes can cause dramatic price movements for the AUD/JPY pair.

GBP/AUD

It is a volatile cross-pair when the British pound is paired against the Australian dollar. Due to the trade wars with China and the Australian dollar being a commodity currency, this pair is highly volatile.

USD/MXN

Another forex pair that moves the most in the market is this one. In other words, it represents the relationship between the US dollar and the Mexican peso. Due to the tension between the two countries, the pair is still more volatile despite being liquid. Furthermore, Mexican exports have been subject to high tariffs, making USD/MXN a volatile currency pair.