by Lucas Bedwell on July 12th, 2023

Some of The Most Volatile Currency Paris on The Forex Market During This Summer

As the summer season casts its vibrant spell across the world, the economic landscape remains aflutter with the ebb and flow of currencies. Behind the picturesque scenes of sandy beaches and bustling markets, a fierce battle for stability ensues, as nations grapple with fluctuating exchange rates and market uncertainties. The summer of has witnessed a tumultuous dance of currencies, with a select few displaying remarkable volatility that keeps economists and investors on the edge of their seats. In this article, we delve into the captivating world of currency instability, shedding light on the forces shaping this summer’s most volatile monetary landscapes.

Top Unstable Currency Pairs to Avoid This Summer


GBP/NZD is known for its high volatility, making it a challenging currency pair to trade. Several factors contribute to this volatility. Firstly, both the British pound (GBP) and the New Zealand dollar (NZD) are influenced by their respective economies, which can experience significant fluctuations. Economic indicators, such as interest rate decisions, GDP growth, employment data, and political events, can greatly impact the exchange rate. As a major exporter of commodities such as dairy and agricultural products, GBP/NZD is influenced by commodity prices as well. Commodity price movements can cause rapid shifts in the NZD value.

The combination of these factors creates a highly unpredictable trading environment. High volatility can offer traders substantial profits, but it can also expose them to substantial risks. The rapid price swings and unpredictability of GBP/NZD make it unsuitable for novice traders or those with a low risk tolerance, leading to its reputation as a challenging currency pair to trade.


Among the most volatile currency pairs in the forex market, GBP/CAD is widely regarded as one of the most volatile. This high volatility can be attributed to a number of factors. Firstly, both the British pound (GBP) and the Canadian dollar (CAD) are influenced by their respective economies, which can experience significant fluctuations. Economic indicators such as interest rate decisions, inflation rates, GDP growth, and employment data can have a profound impact on the exchange rate. Secondly, the GBP/CAD pair is affected by commodity prices, particularly oil prices. Canada is a major oil exporter, and fluctuations in oil prices can cause rapid shifts in the Canadian dollar.

Additionally, political events, geopolitical tensions, and global economic uncertainties can also contribute to the volatility of GBP/CAD. The combination of these factors creates an environment where the exchange rate can experience sharp and sudden movements, making it attractive to traders seeking opportunities for profit but also posing risks for those unprepared to handle its volatility.


The GBP/JPY is one of the most unstable on the forex market due to a variety of factors. Firstly, it is heavily impacted by geopolitical events and news releases from both Japan and the UK. This can cause significant fluctuations in value as investors react to new information or changes in policy. Secondly, this currency pair has large amounts of liquidity which makes it susceptible to rapid price movements driven by speculation or sudden shifts in investor sentiment. Finally, its high volatility also means that traders have access to greater potential profits when trading this pair compared with other less volatile currencies.

Furthermore, since both countries are major exporters and importers there can be an imbalance between supply and demand for either currency leading to further instability over time if not addressed quickly enough by central banks through interest rate adjustments or other measures such as quantitative easing policies designed specifically for each country’s economy needs at any given moment. In addition, the recent Brexit referendum result has added additional uncertainty into markets causing even more drastic swings than usual making GBP/JPY an attractive but challenging asset class among forex traders who need experience managing risk effectively before attempting trades on this particular pair.

By Lucas Bedwell

With 3 years of trading experience across Forex, stocks, and cryptocurrencies, Lucas Bedwell has honed his market insights. His close connection to financial markets allows him to craft compelling copy, offering readers valuable perspectives and analyses that reflect his deep understanding of trading dynamics.

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