Lesson 12 of 12 · 12 min
Course check: test yourself
Flashcards for the pair vocabulary, and ten questions on what drives each pair, when it moves, what it costs, how to size it and how pairs move together.
By the end you'll be able to
- Recall the vocabulary of currency pairs, pip value and volatility
- Apply what drives each pair to realistic situations
- Choose and size the one or two pairs you will focus on
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You have met the main pairs one at a time: what moves them, when they are awake, how far they swing and what they cost. Check that the personalities have stuck before you choose your own.
All the pairs on one card
EUR/USDFiber
The deepest, cheapest market in forex: it can drift for days, then move hard on US data or a central-bank surprise.
LiquidityDeepest
The most traded pair in the world
Typical volatilityModerate
Ordinary days often 50–90 pips
Typical spread (shorter bar = cheaper)Tightest
Often under 1 pip in busy hours
Sensitivity to risk moodMild
Tends to dip in risk-off as the dollar is bought
When it moves (UK time)
Most active in the London session (about 07:00–13:00) and the London–New York overlap (about 13:00–17:00), usually the busiest stretch. Illustrative UK times; Asian-session hours shift by about an hour with daylight saving.
Main drivers
USD/JPY
A yield-gap pair that trades in Tokyo hours as well as New York, with sudden lurches when fear or Japan’s authorities step in.
LiquidityVery deep
Usually the second most traded pair
Typical volatilityAbove average
Usually more pips a day than EUR/USD (a yen pip is 0.01)
Typical spread (shorter bar = cheaper)Tight
Usually tight in active hours
Sensitivity to risk moodHigh
Tends to fall in risk-off as the yen is bought
When it moves (UK time)
Most active in Tokyo hours (about 00:00–09:00) and the London–New York overlap (about 13:00–17:00). Illustrative UK times; Asian-session hours shift by about an hour with daylight saving.
Main drivers
GBP/USDCable
EUR/USD’s livelier cousin: wider daily swings, sharp moves on 07:00 UK data and a long memory for political shocks.
LiquidityVery deep
Very deep, though thinner than EUR/USD
Typical volatilityAbove average
Often 70–120 pips; 100+ is not unusual on a busy day
Typical spread (shorter bar = cheaper)Tight
Often around 1–1.5 pips in busy hours
Sensitivity to risk moodModerate
Sterling is not a safe haven, so it tends to fall in risk-off
When it moves (UK time)
Most active in 07:00 UK data, the London open from about 08:00 and the London–New York overlap (about 13:00–17:00). Illustrative UK times; Asian-session hours shift by about an hour with daylight saving.
Main drivers
AUD/USDAussie
A liquid way to read China, commodities and global growth: it tends to rise with confidence and fall fast with fear.
LiquidityDeep
A liquid major, heavily traded for its size
Typical volatilityAbove average
Often 40–80 pips
Typical spread (shorter bar = cheaper)Tight
Usually tight; often a touch wider than EUR/USD
Sensitivity to risk moodVery high
Tends to rise on calm days and fall fast in a panic
When it moves (UK time)
Most active in Asia-Pacific hours (about 22:00–07:00), the London open and the London–New York overlap (about 13:00–17:00). Illustrative UK times; Asian-session hours shift by about an hour with daylight saving.
Main drivers
USD/CADLoonie
A North American pair loosely tied to oil: quiet in Asian hours and busiest when US and Canadian data land at 13:30 UK time.
LiquidityDeep
Deep, especially in North American hours
Typical volatilityModerate
Often 50–90 pips
Typical spread (shorter bar = cheaper)Tight
Tight in North American hours; a little wider than EUR/USD
Sensitivity to risk moodModerate
Risk-off tends to lift it: oil falls and the dollar is bought
When it moves (UK time)
Most active in the North American morning (about 13:00–17:00), staying livelier than European pairs into the evening. Illustrative UK times; Asian-session hours shift by about an hour with daylight saving.
Main drivers
USD/CHFSwissie
Usually calm and close to a mirror image of EUR/USD, but the franc is a safe haven and can lurch when markets panic.
LiquidityDeep
Smaller than EUR/USD by turnover, still deep
Typical volatilityModerate
Often 40–80 pips; sudden in a crisis
Typical spread (shorter bar = cheaper)Tight
Usually a little wider than EUR/USD
Sensitivity to risk moodModerate
Both sides are havens, so a panic can push it either way
When it moves (UK time)
Most active in the European open through the London–New York overlap (about 07:00–17:00), busiest from 13:00. Illustrative UK times; Asian-session hours shift by about an hour with daylight saving.
Main drivers
NZD/USDKiwi
A smaller, carry-sensitive commodity currency whose own news lands overnight for UK traders and which often shadows the Aussie.
LiquidityGood
Liquid in busy hours, thinner than the big majors
Typical volatilityAbove average
Often 40–70 pips
Typical spread (shorter bar = cheaper)Moderate
A little wider than EUR/USD; widens more when quiet
Sensitivity to risk moodVery high
Carry money arrives in calm markets and leaves fast in a panic
When it moves (UK time)
Most active in the Asia-Pacific window (about 20:00–03:00) for New Zealand news, and the London–New York overlap (about 13:00–17:00) for US data. Illustrative UK times; Asian-session hours shift by about an hour with daylight saving.
Main drivers
EUR/GBP
Two neighbouring economies whose currencies tend to drift together: small daily ranges, so the spread matters more.
LiquidityDeep
Deep in London hours, thin outside them
Typical volatilityQuiet
Often 30–50 pips
Typical spread (shorter bar = cheaper)Moderate
A little wider than EUR/USD, and large next to its range
Sensitivity to risk moodLow
Little direct link: both sides tend to react alike
When it moves (UK time)
Most active in the London session (about 07:00–16:30), busiest in the morning; quiet outside it. Illustrative UK times; Asian-session hours shift by about an hour with daylight saving.
Main drivers
EUR/JPY
A cross with two home markets, active from Tokyo through the London morning, that rises with confidence and falls with fear.
LiquidityDeep
Liquid in Tokyo and London hours
Typical volatilityHigh
Usually more pips a day than EUR/USD; 100+ on risk-off days
Typical spread (shorter bar = cheaper)Moderate
A little wider than EUR/USD or USD/JPY
Sensitivity to risk moodHigh
Tends to rise with confidence and fall with fear
When it moves (UK time)
Most active in Tokyo hours, then busiest from the Tokyo–London handover through the London morning (about 07:00–13:00). Illustrative UK times; Asian-session hours shift by about an hour with daylight saving.
Main drivers
GBP/JPY
The widest-ranging pair here: pound news and yen safe-haven swings combined, so stops need room and positions must be smaller.
LiquidityGood
Good in London hours; thin in late US hours
Typical volatilityVery high
Often 100–200 pips
Typical spread (shorter bar = cheaper)Wider
Wider than GBP/USD or USD/JPY, small next to its range
Sensitivity to risk moodHigh
Falls sharply when fear returns and carry trades unwind
When it moves (UK time)
Most active in stirs in Tokyo hours, then fully alive from the London open (about 07:00) through the overlap to about 17:00. Illustrative UK times; Asian-session hours shift by about an hour with daylight saving.
Main drivers
Every pair in this course. Tap through them and, for each one, say out loud what drives it and when it is busiest before you read the card.
Flashcards
Pair terms
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Course quiz
Course quiz: 10 questions
Question 1 of 10
Which of these usually moves EUR/USD most on a given day?
Question 2 of 10
Markets panic and investors rush for safety. What does USD/JPY often do?
Question 3 of 10
Oil rallies strongly. If the usual link holds, what does USD/CAD tend to do?
Question 4 of 10
The dollar weakens 1% against everything. What happens to EUR/GBP?
Question 5 of 10
What is a pip worth per standard lot on GBP/JPY with USD/JPY at 150?
Question 6 of 10
A $5,000 account risks 1% ($50). EUR/USD needs a 75-pip stop and GBP/JPY a 225-pip stop. Which sizes keep the risk the same?
Question 7 of 10
Why do exotic pairs such as USD/TRY usually cost much more to hold for a week?
Question 8 of 10
You are long EUR/USD and long USD/CHF, the same size. What is your real position?
Question 9 of 10
You are long AUD/USD and long NZD/USD at 1% risk each. How should you think about the risk?
Question 10 of 10
You work 9 to 5 UK time and can trade only from 18:00 to 21:00 UK. What is the sensible choice?
Next steps: use the pair picker to shortlist one or two pairs, then read their full pair guides, starting with the EUR/USD trading guide.
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