Minor / Cross Pairs

Minor pairs, or cross pairs (crosses), are currency pairs composed of two major currencies without the direct involvement of the US dollar. These currencies include the euro, British pound, Japanese yen, Swiss franc, and others.

Prominent examples of minor pairs include EUR/GBP, EUR/JPY, GBP/JPY, EUR/CHF, and AUD/JPY. The exchange rates of these pairs are fundamentally derived from the exchange rates of each respective currency against the US dollar through a calculation process known as cross-rate pricing.

These pairs typically boast healthy liquidity—though lower than that of major pairs—and may carry slightly wider spreads because they rely on two underlying reference pairs rather than a single direct quote against the dollar.

Minor pairs are frequently used by traders looking to capitalize on relative economic strength between two specific countries without direct exposure to US dollar fluctuations, offering an additional analytical angle for their strategies.

A common mistake is overlooking that these pairs are driven simultaneously by news from both relevant economies, or underestimating the volatility of certain crosses, which can at times exceed that of major pairs.