Understanding Minor Currency Pairs
BY TIOmarkets
|January 29, 2026Minor currency pairs are an important part of the forex market, yet many traders overlook them. These currency pairs do not include the US dollar, but they still offer active price movement and trading opportunities. In this guide, you will learn what minor currency pairs are, how they work, and whether trading them is right for your forex strategy.
What’s Included in This Article
In this guide, you will learn:
- What minor currency pairs are
- A clear minor currency pairs list
- Why traders choose minor pairs
- What affects the price of minor currency pairs
- The risks and differences compared to major pairs
This article will help you understand currency pair forex trading beyond the basics.
List of Minor Currency Pairs
Minor currency pairs are currency pairs that do not include the US dollar. They are also called cross-currency pairs.
Below is a simple minor currency pairs list:
| Minor Currency Pair | Countries Involved |
| EUR/GBP | Eurozone / UK |
| EUR/JPY | Eurozone / Japan |
| EUR/CHF | Eurozone / Switzerland |
| EUR/AUD | Eurozone / Australia |
| GBP/JPY | UK / Japan |
| GBP/CHF | UK / Switzerland |
| AUD/JPY | Australia / Japan |
| NZD/JPY | New Zealand / Japan |
| CAD/JPY | Canada / Japan |
| CHF/JPY | Switzerland / Japan |
These currency pairs are actively traded but with lower volume than major pairs.
Advantages of Trading Minor Currency Pairs in Forex
Trading minor currency pairs can offer unique opportunities.
One advantage is less direct US dollar influence. This allows traders to focus on specific regional economies.
Minor pairs can also provide strong price movement, which may create more trading setups for experienced traders.
Some traders use minor currency pairs to diversify their trading strategy and avoid overexposure to USD-based markets.
Factors That Influence the Value of Minor Currency Pairs in Forex
The value of minor currency pairs depends on several factors.
Economic data from both countries involved plays a major role. This includes interest rates, inflation, and employment reports.
Central bank decisions strongly impact minor pairs, especially when policies differ between the two regions.
Market sentiment and global events can also affect prices, especially during times of uncertainty.
Because minor pairs involve two strong currencies, price movement often reflects relative economic strength.
How Do Minor Currency Pairs Work?
Minor currency pairs work the same way as any other currency pair in forex.
One currency is bought while the other is sold. The price shows how much of the quote currency is needed to buy one unit of the base currency.
For example, if EUR/GBP rises, it means the euro is getting stronger compared to the British pound.
Even without the US dollar, these currency pairs still follow supply and demand in the global forex market.
What Affects the Prices of Minor Currency Pairs?
Several elements affect minor currency pair prices.
Interest rate differences between the two countries often drive price changes.
Political stability, trade relations, and economic growth also influence how traders value each currency.
Liquidity is another factor. Minor pairs usually have wider spreads than major pairs, which can impact trading costs.
FAQs
What are the risks of trading minor currency pairs?
Minor currency pairs often have higher spreads and lower liquidity than major pairs. This can increase trading costs and cause faster price swings.
Are minor currency pairs more volatile than major currency pairs in forex?
Yes, in many cases. Minor currency pairs can be more volatile because they are traded less often than major pairs. This means prices can move faster in short periods.
How Do Minor Currency Pairs Differ from Major Currency Pairs in Forex?
Major currency pairs always include the US dollar and have the highest trading volume. Minor currency pairs do not include the US dollar and usually have lower liquidity and wider spreads.
Conclusion
Minor currency pairs play an important role in forex trading. They allow traders to explore opportunities beyond the US dollar and focus on regional economic strength. While they can offer strong price movement, they also come with higher risk and trading costs.
Understanding how minor currency pairs work can help you decide if they fit your trading style and risk tolerance.
Key Takeaways
- Minor currency pairs do not include the US dollar
- They are also called cross-currency pairs
- They can offer strong price movement
- Trading costs may be higher than for major pairs
- They are better suited for experienced traders
Ready to explore more currency pair forex opportunities?
Trade major and minor currency pairs with TIOmarkets and benefit from competitive spreads, fast execution, and trusted trading conditions.
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