The most manipulated currency pairs: USD/CNY, EUR/CHF, and more
Currency manipulation is a controversial yet real aspect of the forex market. While outright illegal manipulation is rare, central banks, hedge funds, and large financial institutions often influence exchange rates through interventions, monetary policies, and speculative trading.
Some currency pairs are more susceptible to manipulation than others due to economic policies, liquidity, and geopolitical factors. In this article, we’ll explore the most manipulated currency pairs, how they’re influenced, and trading strategies to navigate these waters.
USD/CNY (US Dollar vs. Chinese Yuan)
Why it’s manipulated
China has a long history of managing the yuan’s value to support its export-driven economy. The People’s Bank of China (PBOC) sets a daily “fixing rate” and intervenes in forex markets to prevent excessive volatility.
How to trade it
- Watch PBOC announcements: Sudden changes in the fixing rate can signal intervention.
- Trade around key levels: The yuan often moves in tight ranges; breakout strategies work when policy shifts occur.
- Use options for hedging: Due to sudden interventions, options can protect against unexpected moves.
➡ Hedging Forex trading: how to trade in falling markets
Example: In 2015, China devalued the yuan by nearly 2% overnight, catching traders off guard. Those monitoring PBOC signals could have positioned for a weakening yuan.
EUR/CHF (Euro vs. Swiss Franc)
Why it’s manipulated
The Swiss National Bank (SNB) is notorious for interventions. In 2015, they shocked markets by removing the 1.20 EUR/CHF peg, causing a 30% franc surge in minutes.
How to trade it
- Avoid overleveraging: SNB actions can be sudden and extreme.
- Follow SNB speeches: Hints about currency strength or weakness can precede moves.
- Range trading with caution: The pair tends to stabilize between 0.95-1.05 unless SNB acts.
➡ Forex risk management: effective strategies for safe trading
Example: After the 2015 peg removal, traders who shorted EUR/CHF with tight stops profited from the franc’s surge.
USD/JPY (US Dollar vs. Japanese Yen)
Why it’s manipulated
The Bank of Japan (BoJ) frequently intervenes to weaken the yen, helping exporters. They use verbal interventions, negative interest rates, and direct forex purchases.
How to trade it
- Monitor BoJ statements: Phrases like “excessive volatility” signal potential intervention.
- Trade with the trend (until intervention): USD/JPY trends well until BoJ steps in.
- Use technical levels: Key supports/resistances (e.g., 150, 152) often trigger BoJ action.
Example: In 2022, Japan spent $60 billion defending the yen at 152—traders who faded the extreme move profited when intervention faded.
GBP/USD (British Pound vs. US Dollar)
Why it’s susceptible to manipulation
While less direct than others, the Bank of England (BoE) and hedge funds influence GBP via rate policies and speculative attacks (like in 1992’s Black Wednesday).
How to trade it
- Follow BoE policy shifts: Hawkish vs. dovish tones impact GBP sharply.
- Beware of Brexit-like events: Political shocks cause extreme volatility.
- Mean reversion at extremes: GBP/USD tends to revert after big drops (e.g., post-2016 Brexit crash recovery).
➡ Forex mean reversion explained: strategies, indicators, and Top brokers
Example: In 2022, GBP crashed to 1.03 after Truss’s mini-budget but rebounded sharply when the BoE intervened.
USD/RUB (US Dollar vs. Russian Ruble)
Why it’s highly manipulated
Sanctions and capital controls make the ruble one of the most controlled currencies. Russia mandates exporters to sell forex earnings, artificially supporting the ruble.
How to trade it
- Trade news-driven spikes: Sanctions or oil price changes cause sharp moves.
- Avoid long-term positions: Government controls make trends unreliable.
- Use CFDs with caution: Liquidity can vanish during crises.
Example: In 2022, USD/RUB spiked to 150 post-invasion but was forced back to 60 via capital controls.
Top 5 FX and CFD brokers to start trading
If you’re looking to trade manipulated currency pairs (or any forex/CFD instruments), choosing the right broker is crucial. Here are the top 5 brokers from your list, along with key details to help you decide:
XTB
✅ Best for: Low spreads, advanced traders, regulatory trust
🔹 Regulation: FCA (UK), KNF (Poland), CySEC (Cyprus)
🔹 Platforms: xStation 5 (award-winning), MT4
🔹 Spreads: From 0.1 pips (EUR/USD)
🔹 Leverage: Up to 1:30 (EU), 1:500 (Global)
🔹 Minimum deposit: $0 (no deposit required to open an account)
🔹 Bonus: Free educational resources, no commissions on some accounts
Why XTB?
- One of the most trusted brokers in Europe.
- Excellent trading tools and research.
- No hidden fees on standard accounts.
AvaTrade
✅ Best for: Beginners, automated trading, global traders
🔹 Regulation: ASIC (Australia), FSCA (South Africa), CBI (Ireland)
🔹 Platforms: MT4, MT5, AvaTradeGO, DupliTrade (copy trading)
🔹 Spreads: From 0.9 pips (EUR/USD)
🔹 Leverage: Up to 1:400 (non-EU)
🔹 Minimum deposit: $100
🔹 Bonus: Free demo account, Islamic accounts available
Why AvaTrade?
- Strong regulation and long-standing reputation.
- Supports automated trading (Expert Advisors).
- Great for beginners with a user-friendly app.
BlackBull Markets
✅ Best for: ECN trading, tight spreads, professional traders
🔹 Regulation: FMA (New Zealand), FSA (Seychelles)
🔹 Platforms: MT4, MT5, TradingView
🔹 Spreads: From 0.0 pips (ECN account)
🔹 Leverage: Up to 1:500
🔹 Minimum deposit: $0 (Standard), $200 (Prime ECN)
🔹 Bonus: No dealing desk execution, fast deposits/withdrawals
Why BlackBull?
- True ECN broker with deep liquidity.
- Ideal for scalpers and high-volume traders.
- Supports crypto and commodities trading.
eToro
✅ Best for: Social/copy trading, beginners, long-term investors
🔹 Regulation: FCA (UK), CySEC (Cyprus), ASIC (Australia)
🔹 Platforms: eToro’s proprietary platform
🔹 Spreads: Variable, starts at 1 pip (EUR/USD)
🔹 Leverage: Up to 1:30 (retail), 1:400 (pro)
🔹 Minimum deposit: $50 (varies by region)
🔹 Bonus: Free demo account, copy trading feature
Why eToro?
- Best social trading platform (copy top traders).
- User-friendly for beginners.
- Offers stocks, crypto, and ETFs alongside forex.
Risk disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
Exness
✅ Best for: High leverage, fast withdrawals, scalpers
🔹 Regulation: FCA (UK), CySEC (Cyprus), FSA (Seychelles)
🔹 Platforms: MT4, MT5, Exness Terminal
🔹 Spreads: From 0.0 pips (Raw Spread account)
🔹 Leverage: Up to 1:Unlimited (for some accounts)
🔹 Minimum deposit: $1 (Standard), $200 (Pro)
🔹 Bonus: Instant withdrawals, no requotes
Why Exness?
- One of the highest leverage brokers available.
- Lightning-fast execution (good for scalping).
- Low minimum deposit makes it accessible.
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Most manipulated currency pairs - FAQ