Forex Volatility. In recent times, political developments across the globe have also been a factor contributing to market volatility. Alternatively, the lower the number, the lower volatility is.
Volatility is the statistical tendency of a market to rise or fall sharply within a certain period of time. The volatility of the major currency pairs is much lower. It is a good indicator if you want to know how big the rate changes were during the last N periods at a glance.
However, drastic and sudden movements are also possible in the forex market.
Liquid markets such as forex tend to move in smaller increments because their high liquidity results in lower volatility.
Forex volatility can be both positive and negative for your trading, and there are a few things you want to take into account. It's important to understand the relative volatility of each currency. It is measured by standard deviations – meaning how much a price deviates from what is expected, which is generally its mean.