Currency Pairs List

Published: 05th May 2011
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Currency Pairs Explained



Foreign exchange trade or forex trading is all about buying and selling currencies in pairs or rather exchanging one for the other. For buying and selling currencies, you need to be informed with regard to how much one of the currencies is worth in terms of the other.



The statement of this relationship is made in terms of a currency pair. So a currency pair is the quoting of two currency abbreviations followed by a listing of the value of base currency with reference to the counter currency. The foreign exchange rates are decided by the import and export volumes between two countries. There is an international code which specifies the nomenclature for stating currency pairs. For example, a quote like EUR/USD 1.23 means that 1 Euro is worth 1.23 USD. Here the base currency is Euro (EUR) and thne counter currency is US dollar. Thus, every currency pair is listed in the foreign exchange markets across the world.



Forex Major Currency Pairs



Not surprisingly, the most dominant and strongest, as well as the most widely traded currency is the US dollar. It features in all the major currencies pairs of the world listed below. The reason for this is the sheer size of the US economy. US dollar is the currency that is the preferred reference in most currency trading transactions around the world. It is the dominant reserve currency of the world. Below are the major currency pairs the have high liquidity and take up the major share of FX transactions.



EUR/USD (Euro - US Dollar) USD/JPY (US Dollar - Japanese Yen) GBP/USD (Pound Sterling - US Dollar) AUD/USD (Australian Dollar - US Dollar) USD/CHF (US Dollar - Swiss Franc) USD/CAD (US Dollar - Canadian Dollar)



The values of these currencies keep fluctuating according to each other, as the trade volumes between the two countries keep changing every year. Up to the minute currency exchange rates can be found on sites offering live foreign exchange reports. Currency converters are now widely available online, which can calculate the value of a currency with reference to another, at the current market value.



These are the main currency pairs and are traded the most globally. These major currency pairs are naturally associated with countries that are financial superpowers with a high volume of trade. The dynamics of the foreign exchange trade is a key pointer to the pulse of the world economy, along with it's rising and falling financial fortunes.



As globalization engulfs evermore countries, the fates of these major currency pairs are indelibly linked. Be certain to study the foreign exchange market in depth before entering this market which never sleeps.





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Miles Carmichael is a professional Forex Trader of many years standing. He is happy to share his FX knowledge and know how with fellow traders.

His Free Forex Strategies and his Free Pro FX System are available NOW. Learn from a successful forex trader.

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