What are the Minor Currency Pairs?

02 November 2025

In forex trading, minor currencies are those pairs that do not include the U.S. dollar but still involve other major global currencies, like the euro, pound sterling, yen, or Swiss franc. These pairs connect major economies and create trading opportunities with substantial volatility. Forex minor currency pairs help traders diversify their portfolios and trade on regional economies. For example, the EUR/GBP pair shows the relationship between the eurozone and the UK, while EUR/JPY shows how EU markets interact with the Japanese economy. These pairs add diversity to the foreign exchange market and increase the number of opportunities for forex traders and investors. Despite being called minor, these pairs still account for 15-20% of global forex trading volume, according to the Bank for International Settlements (BIS). While even the most traded minor currency pairs have higher spreads, they still offer strong trading potential due to larger price swings than major currency pairs. By following EU, Asian, and Oceanic market trends, traders can depict minor pair movements and find opportunities in these markets.

Forex minor currency pairs definition

Forex minor currency pairs are also called cross-currency pairs because they exclude the U.S. dollar but involve other top currencies. These pairs are crucial instruments because they link major economies and are traded in large volumes, but not as much as major pairs like EUR/USD, GBP/USD, USD/JPY, and USD/CHF.

The most traded minor currency pairs

The largest cross-pairs with trading volume are:

EUR/GBP – Euro vs. British Pound
EUR/JPY – Euro vs. Japanese Yen
GBP/JPY – British Pound vs. Japanese Yen
CHF/JPY – Swiss Franc vs. Japanese Yen
AUD/JPY – Australian Dollar vs. Japanese Yen
NZD/JPY – New Zealand Dollar vs. Japanese Yen
EUR/CHF – Euro vs. Swiss Franc

These are the best minor currency pairs examples because they provide the most volatility without extreme spreads, and traders can catch multiple opportunities each trading day.

Each pair has unique economic drivers. For example, the EUR/GBP pair is heavily influenced by the ECB(European Central Bank) and Bank of England (BoE) policies, while AUD/JPY reflects risk sentiment and commodity trends. JPY cross pairs like EUR/JPY and GBP/JPY, on the other hand, respond to changes in Asian market activity and economies. Minor currency pairs trading requires stricter risk limits as spreads are usually higher because of lower liquidity compared to major pairs. However, cross pairs often provide smoother technical patterns and less noise from the U.S. economic events. Overall, minor pairs provide cleaner opportunities for traders who follow regional data.

Why is trading minor currency pairs a good idea?

Minor pairs, or cross pairs, allow traders to access opportunities beyond the U.S. dollar markets. Since major pairs are heavily influenced by the U.S. economic data, trading cross pairs helps avoid exposure to USD volatility. Together with advantages, trading minor currency pairs bears their own set of challenges and downsides.

Benefits

The first and most obvious benefit of minor currency pairs is that they provide a powerful vehicle for diversification. Traders and investors gain exposure to regional economies such as Europe, the UK, and Japan. Another advantage is the technical clarity, meaning price movements can be cleaner with less noise and, as a result, fewer whipsaws than major pairs that are widely traded. The third advantage is the independent trends, meaning cross pairs tend to move differently from major pairs, creating even more trading setups and trends.

Challenges

Disadvantages of minor pairs usually include wider spreads and lower liquidity. This can result in slower price movements during off-peak hours, and price spikes might occur more frequently, making it riskier to trade these pairs. Wider spreads are especially noticeable outside of European or Asian trading sessions.

Minor pairs analysis helps traders balance their portfolios. For example, if USD pairs are quiet, traders can switch to EUR/GBP or AUD/JPY for more setups. Since minor pairs include safe-haven currencies like JPY and CHF,

Minor pairs analysis - A brief how-to

To analyze forex minor pairs, traders need to understand both technical and fundamental factors. Fundamental analysis focuses on regional data like GDP, interest rate decisions, and inflation from both economies involved in the cross-pair. For example, EUR/GBP strongly reacts to ECB and BoE decisions, while AUD/JPY depends on the Reserve Bank of Australia announcements and Japanese macroeconomic data.

Technical analysis, on the other hand, price price-related things, like chart patterns, support/resistance zones, and indicators like RSI or moving averages. Since minor pairs tend to form clear ranges and trends, technical setups can be easier to spot than in volatile USD pairs.

There are also correlations between different Forex minor currency pairs, which play a crucial role in trading. For example, EUR/GBP often moves in line with EUR/USD but has less dramatic swings. The AUD/JPY tends to mirror stock market sentiment because of its risk-sensitive nature. Successful minor currency pairs trading requires analyzing both currencies equally; traders must follow both economies’ reports, rate changes, and political developments. By analyzing these relationships, it becomes much easier to anticipate market movements and enter with confidence.

Minor currency pairs trading strategies

Popular cross-pair trading strategies are trend-following, range trading, and news-based scalping. These methods can be used depending on the trader’s preferences and trading style. Each of them has its own pros and cons. Let’s briefly explain how each of them works, to make it easier for you to select the most suitable one for your trading and financial goals.

Trend-following

Trend-following strategies aim to catch the price trends, where prices tend to move in one direction, either up or down, consistently. This method is best for momentum pairs like EUR/JPY or GBP/JPY, which often trend strongly after key data releases or central bank meetings.

Range trading

Range trading is fairly popular among traders because markets are mostly in range conditions, meaning they do not have one dominant direction. Instead, they move up and down in a range. The one cross pair that is often in range markets is the USD/CHF, and more often than not, it is in a choppy market state. It often trades between tight zones due to lower volatility than other cross-pairs.

News-based trading

News-based scalping is a trading strategy where traders speculate on forex pairs during the release of major macroeconomic indicators, such as NFP and interest rates. Among the top-traded minor currency pairs in this category is the EUR/GBP, particularly during major news releases from the UK and the ECB, such as GDP or interest rates.

Tools and risk management

Helpful tools include MACD, RSI, and moving averages to filter noise and confirm trends or reversals. With technical indicators like these, traders can ensure their setups and fundamental analysis are spot on by picking the best entries.

Because of frequent liquidity drops, traders should use stop-loss orders, avoid oversized positions, and monitor spreads very attentively. When volatility rises due to major news like the UK GDP announcement, spreads widen, and traders need to set stop-loss orders slightly further away than normally to avoid getting stopped out by random movement.

Top traded minor currency pairs

The most traded minor currency pairs are typically the ones linking the biggest non-USD economies. According to the data from the Bank of International Settlements, the top-traded cross-pairs include EUR/GBP, EUR/JPY, GBP/JPY, AUD/JPY, and CHF/JPY. As we can see, yen pairs are very popular among cross pairs due to their volatility and liquidity, supported by Asian markets when the Tokyo session is active. Apart from JPY, the popular cross pair is also EUR/GBP, which dominates during the London hours. Traders who can match their strategy with the right market timing can get smoother execution and better volatility, therefore combining the two most important factors.

Fundamentals for minor currency pairs examples

Most popular cross pairs are each affected by different fundamentals depending on their country of origin and economic interplays between the economies involved in the currency pair. Below is the list of popular minors with the main fundamental forces that can affect their volatility and exchange rate:

EUR/GBP - ECB vs BoE interest rate differentials and expectations, Eurozone and UK GDP/inflation data, trade relations, Brexit developments, and European risk sentiment.
EUR/JPY - ECB policies, Eurozone growth indicators, BoJ (Bank of Japan) policies, global risk sentiment, and carry trade dynamics. JPY, as a safe-haven currency, strengthens during risky periods.
GBP/JPY - BoE policies, UK economic data (inflation, wages, GDP, etc.), BoJ policies, and global risk sentiment. Sensitive to market volatility because of the yen’s safe-haven currency reputation (when global risks rise, the yen strengthens).
AUD/JPY - Commodity prices (AUD is commodity-driven: iron ore and coal), RBA policies (Australia’s central bank), Chinese economic data (Australia’s biggest trading partner), and global risk sentiment (JPY safe-haven status).
CHF/JPY - Both currencies are safe havens. Affected by SNB policy changes, Swiss economic stability, and BoJ policy shifts. This pair is mostly quiet unless there is volatility or geopolitical shocks involved.

Tips for trading minor currency pairs

Trading minor currency pairs requires several skills from forex traders: timing, knowledge of the involved fundamentals behind constituent currencies, and a strict risk management strategy. All this should be executed with discipline and proper market analysis.

Minor currency pairs trading strategy best practices

To ensure you are not getting caught in thin markets and increased market noise with price spikes and large spreads, it is a good idea to trade during overlapping sessions like London-Tokyo. This provides better liquidity, and markets are also more active as traders and participants from several regions are trading the market. To counter unpredictable moves, which frequently happen in foreign exchange markets, ensure to lower leverage or use lower lot sizes, or do both. By lowering the leverage, risks are also reduced, and with lower lot sizes, you can take more pips in losses without damaging the trading account. Forex markets become especially volatile during major economic news releases, like employment rates, interest rates, and so on. To counter this, it is necessary to monitor the economic calendar, where you can easily filter high-impact news. The economic calendar is a powerful tool in a trader's arsenal as it allows you to monitor major news, which can cause large volatility and wild price swings. By avoiding trading during these times, you can avoid unnecessary losses or develop news-based trading systems specifically adapted to high-impact market news.

Despite all the measures above, it is crucial to understand that spreads are wider on minor pairs and slippages are not rare, meaning you might not get filled at the best price, leading to reduced profits or increased losses. As a result, monitoring spreads before entering and using pending orders to reduce exposure to slippage is the best idea.

If you are trading the minor currency pair and the trading volume is low and liquidity is thin, try to avoid overtrading, meaning do not open too many trades. Fewer trades equal less exposure to unpredictable random spikes.

Conclusion

Minor currency pairs or cross pairs enable traders to expose themselves to broader regional economies beyond just the dollar. This often enables speculators to focus on regional economies with cleaner technical setups and independent market trends. They also add the number of opportunities USD pairs provide, enabling traders to catch more setups throughout the trading day. While spreads are wider and liquidity is often lower, these setbacks can be managed by a proper minor currency pairs trading strategy with strict risk management and economic calendar control. Proper timing, strict risk controls, and understanding fundamental drivers will all help to manage cross-pair trading setups effectively.

By analyzing the economic forces behind each cross pair and applying disciplined strategies with lower lot sizes and leverage, traders can take full advantage of the unique volatility setups that minor currency pairs provide.