The table above shows that exotic pairs are the forex pairs with highest daily range. The most volatile pair on the list moves by 673 points per day, the USD/SEK pair.
On the other hand, the major pairs have the least volatile forex pairs, GBP/USD being the highest with 100 points. The reason for this is due to the high and low liquidity levels among the currency pairs. So this means the higher the liquidity, the lower the volatility.
It is hard to determine the most volatile currency pairs because volatility affects many different currency pairs. Price movements are always calculated in terms of pips, and if a currency pair moves by 200 pips at a given time, it is considered a more volatile pair than the one moving by 20 pips given the same period.
According to many sources, exotic pairs are the most volatile forex pairs as their liquidity is low. This means that their supply and demand in the market are low, so their volatility is high. Here is a simple explanation to that;