XE Currency FAQ

What is an example of high volatility, or low volatility?

Answer

On June 23rd 2016, the United Kingdom voted yes to a referendum to leave the European Union. This result caused high volatility in the value of the USD to GBP pair. On this date, the volatility of the British Pound hit a monthly score of 1.72% and a weekly score of 3.25%.

The USD to GBP currency pair is a typically stable one. In 2017, the monthly volatility was in average 0.45%.

Another extreme example is the Bermudian Dollar, a currency that is pegged with a fixed exchange rate of 1 Bermudian Dollar to 1 US Dollar. Because the exchange rate will always be 1, the volatility rate of the USD to BMD in any period is 0.00%.

Every currency pair displays a characteristic behavior and volatility range. We encourage you to explore any currency pair you may be interested in.

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