The most manipulated currency pairs (and how to trade them)

4 min readAug 25, 2025

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

Get TopForex.Trade’s stories in your inbox

Join Medium for free to get updates from this writer.

Remember me for faster sign in

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.

Continue reading:

The most manipulated currency pairs: USD/CNY, EUR/CHF, and more