Volatility
The measure of price fluctuation in a currency pair over time, indicating how much and how quickly prices are moving.
What is Volatility?
Volatility measures how much a currency pair’s price moves over a period. High volatility means large price swings; low volatility means stable prices.
Volatility by Pair Type
| Pair | Typical Volatility | Daily Range |
|---|---|---|
| EUR/USD | Low-Medium | 50-80 pips |
| GBP/USD | Medium-High | 80-120 pips |
| GBP/JPY | Very High | 100-200 pips |
| EUR/CHF | Low | 30-50 pips |
What Affects Volatility?
- News events: Central bank decisions, NFP, GDP
- Trading session: London/NY overlap is most volatile
- Market conditions: Crisis periods increase volatility
- Liquidity: Low liquidity = higher volatility
Trading Volatility
High volatility:
- Larger profit potential
- Requires wider stop-losses
- Higher risk per trade
Low volatility:
- Smaller moves
- Tighter stops possible
- Good for range trading
Currency Strength in Volatile Markets
Our Currency Strength Meter shows which currencies are moving most strongly, helping you find volatile pairs with clear direction.