Minor Pair (Cross)

Minor pairs, also called cross pairs or crosses, combine two major currencies without involving the US dollar. EUR/GBP, EUR/JPY, GBP/JPY, AUD/NZD, and CHF/JPY are common examples. They offer diversification beyond dollar-centric trading while maintaining reasonable liquidity.

Historically, cross pairs didn't trade directly — a EUR/GBP trade was actually two transactions (sell EUR/USD, buy GBP/USD). Modern markets handle crosses directly, but the pricing is still derived from the USD legs. This means crosses can sometimes behave in ways that seem disconnected from either component currency.

Spreads on minor pairs are wider than majors but narrower than exotics — typically 1-3 pips on popular crosses like EUR/GBP or GBP/JPY. Some crosses, particularly JPY crosses, can be quite volatile and are popular among day traders looking for larger intraday moves. AUD/NZD, by contrast, tends to range in tighter bands and attracts range-trading strategies.