Minor pairs sit between the highly traded major currency pairs and the thin, unpredictable exotic pairs. They’re formed by combining two strong global currencies—such as:
EUR/GBP
GBP/JPY
EUR/CHF
AUD/NZD
without involving the US dollar.
Because these currencies still belong to major economies, the pairs behave smoothly, but they don’t attract the same level of global volume as majors.
Their price movements reflect the economic relationship between the two countries involved. For example, EUR/GBP often reacts to European Union and UK economic news, while GBP/JPY responds to risk sentiment and interest rate differences between the UK and Japan. Without the dollar acting as an anchor, minor pairs can sometimes be more volatile, offering opportunities for traders who enjoy sharper moves.
Traders often use minor pairs to diversify FX strategies. Instead of always trading USD-driven markets, they can focus on regional relationships, monetary policy differences, or unique macro events impacting just two currencies. This can reveal trends that don’t show up in major USD pairs.
Minor pairs matter because they offer traders a different perspective on currency markets—less tied to US data and more reflective of regional economic shifts. They also provide additional opportunities for diversification and trend discovery.
Minor pairs generally have wider spreads and slightly lower liquidity than major pairs because fewer traders participate. This can lead to sharper short-term moves, especially during news events tied to one of the currencies. They also react more directly to regional developments—like EU policy changes or UK economic reports—without the influence of the US dollar overshadowing the action. These differences make minor pairs useful for traders seeking unique patterns.
Spreads widen because trading volume is lower and market makers take on more risk when quoting prices. With fewer buy and sell orders available at any moment, brokers must protect themselves from sudden swings by offering higher spreads. During high-volatility periods or outside main trading sessions, these spreads can widen even further—something traders must consider when planning entries and exits.
Minor pairs allow traders to reduce dependence on USD-related news and focus on localized economic trends. For example, a trader might use EUR/GBP to bet on differences between the European Central Bank and the Bank of England, or AUD/NZD to analyze commodity-driven economies in the Pacific region. By spreading exposure across multiple currency relationships, traders can uncover new opportunities and avoid being overly affected by a single country’s economic cycle.
A trader closely follows economic data from the UK and the Eurozone. When the Bank of England hints at raising interest rates while the European Central Bank stays cautious, the trader expects the pound to strengthen against the euro. They enter a position in EUR/GBP to capture the divergence—something that wouldn’t be as clear in USD pairs.
FinFeedAPI’s Currencies API provides real-time and historical pricing for all major and minor currency pairs, including spreads, volatility patterns, and intraday movements. Developers can use this data to build FX trading dashboards, backtest strategies on specific regional pairs, or create automated systems that compare minor-pair performance against major-pair trends.
