Minor currency pairs, also called cross pairs or crosses, are currency pairs that don't include the US dollar. They pair major currencies directly against each other. While less traded than majors, minors offer unique opportunities and different market dynamics.
What Are Minor Pairs?
Minor pairs combine major currencies without the USD:
- Euro crosses (EUR/GBP, EUR/JPY, EUR/CHF)
- Yen crosses (GBP/JPY, AUD/JPY, CAD/JPY)
- Pound crosses (GBP/CHF, GBP/AUD)
- Other combinations
They're called "crosses" because historically, converting between non-USD currencies required crossing through the dollar first.
Popular Minor Pairs
Euro Crosses
| Pair | Description |
|---|---|
| EUR/GBP | Euro vs British Pound |
| EUR/JPY | Euro vs Japanese Yen |
| EUR/CHF | Euro vs Swiss Franc |
| EUR/AUD | Euro vs Australian Dollar |
| EUR/CAD | Euro vs Canadian Dollar |
Yen Crosses
| Pair | Description |
|---|---|
| GBP/JPY | British Pound vs Yen |
| AUD/JPY | Australian Dollar vs Yen |
| NZD/JPY | New Zealand Dollar vs Yen |
| CAD/JPY | Canadian Dollar vs Yen |
| CHF/JPY | Swiss Franc vs Yen |
Pound Crosses
| Pair | Description |
|---|---|
| GBP/CHF | British Pound vs Swiss Franc |
| GBP/AUD | British Pound vs Australian Dollar |
| GBP/CAD | British Pound vs Canadian Dollar |
| GBP/NZD | British Pound vs New Zealand Dollar |
Minor vs Major Pairs
| Characteristic | Major Pairs | Minor Pairs |
|---|---|---|
| Includes USD | Yes | No |
| Liquidity | Highest | Moderate |
| Spread | Tightest | Wider |
| Volatility | Lower | Higher |
| Analysis | Abundant | Less available |
Why Trade Minor Pairs?
Different Opportunities
When USD pairs are ranging, crosses may trend:
- EUR/GBP might trend while EUR/USD and GBP/USD consolidate
- Yen crosses often move independently of USD/JPY
Cleaner Technical Patterns
Some traders find crosses produce:
- Clearer trends
- More reliable support/resistance
- Better-defined chart patterns
Diversification
Trading crosses reduces:
- Over-exposure to USD news
- Correlation with USD positions
- Impact of US economic events
Specific Economic Plays
Trade the relationship between two economies directly:
- UK vs Eurozone (EUR/GBP)
- Risk sentiment via yen crosses
- Commodity currencies (AUD/NZD)
Popular Crosses Explained
EUR/GBP
The Brexit Pair
- Reflects UK vs Eurozone economic relationship
- Relatively stable with occasional spikes
- Influenced by Bank of England and ECB
- Brexit brought years of sharp, politically driven moves
Typical Spread: 1-2 pips
EUR/JPY
Risk Sentiment Indicator
- Combines Euro with safe-haven Yen
- More volatile than EUR/USD
- Risk-on: EUR/JPY rises
- Risk-off: EUR/JPY falls
Typical Spread: 1-3 pips
GBP/JPY
The Dragon or Beast
- One of the most volatile crosses
- Can move 100-200 pips daily
- Not for beginners
- Requires wider stops
Typical Spread: 2-4 pips
AUD/JPY
The Carry Trade Favorite
- Classic carry trade pair
- Sensitive to risk sentiment
- Correlates with stock markets
- Falls sharply during crises
Typical Spread: 2-3 pips
AUD/NZD
The Trans-Tasman
- Two similar economies paired
- Often range-bound
- Good for range trading strategies
- Less volatile
Typical Spread: 2-4 pips
Trading Considerations
Wider Spreads
Minors cost more to trade:
| Type | Typical Spread |
|---|---|
| EUR/USD | 0.5-1.5 pips |
| EUR/GBP | 1-2 pips |
| GBP/JPY | 2-4 pips |
| EUR/AUD | 2-4 pips |
Factor this into profit targets.
Higher Volatility
Many crosses move more than majors:
- GBP/JPY can move 150+ pips daily
- Requires larger stop losses
- Position sizing must account for this
Different Active Hours
Best trading times depend on currencies involved:
- EUR/GBP: London session
- EUR/JPY: London and Tokyo overlap
- AUD/NZD: Asian session
Less Liquidity
During off-hours:
- Spreads widen more than majors
- Slippage more likely
- Gaps more common
How Crosses Are Priced
Crosses derive their price from two USD pairs:
EUR/GBP = EUR/USD ÷ GBP/USD
Example:
- EUR/USD = 1.1000
- GBP/USD = 1.2500
- EUR/GBP = 1.1000 ÷ 1.2500 = 0.8800
This is why crosses can be more volatile—they reflect movements in two USD pairs.
Best Crosses for Beginners
Start with the more liquid, less volatile crosses:
- EUR/GBP - Lower volatility, tight spreads
- EUR/JPY - Good liquidity, clear trends
- AUD/NZD - Often range-bound, though no pair is predictable
Avoid GBP/JPY until you have experience managing high volatility.
Key Takeaways
- Minor pairs don't include the US dollar
- They're also called crosses or cross pairs
- Spreads are wider but offer unique opportunities
- Volatility is typically higher than majors
- Best traded during relevant session overlaps
- GBP/JPY is one of the most volatile crosses
- Start with less volatile crosses like EUR/GBP
What's Next?
Explore exotic currency pairs and understand their unique risks and rewards.
This article is for educational purposes only and does not constitute financial advice.