GBP/USD, EUR/USD, USD/CHF, USD/CAD and USD/JPY are the main currency pairs that will mostly appear in the Forex market. These are the forms, but you can read them as Euro against US dollar, US dollar against Japanese yen, British pound against US dollar, US dollar against Swiss franc, and US dollar against Canadian dollar. These 5 currencies are dominating 85% of daily transaction and that’s why they’re called as the five major currencies pairs on the Forex market. But, besides these 5 pairs, you will also find other currencies that might not involve the US dollar, for example EUR/JPY.
If you come to the Forex market, you will notice such thing like EUR/USD 1.34. This symbol means that 1 Euro is equal to 1.34 US dollars. By this example, then you will know that the first listed currency is the base currency in which its value will always be 1. You will also notice that this value is changing up and down. When the value is increasing, it means that the value of Euro is increasing while the value of US dollars is decreasing. Simply said, the Euro is gaining strength against US dollar. Or when the value is decreasing, it means that the Euro is weakening against US dollar.
The US dollar is not always be the base currency in the Forex market. There are some currency pairs that use other currency as its base. For example, AUD/USD, GBP/USD, EUR/USD in this pairs the British pound, Australian dollar and Euro are the base currencies.
Bookmark/share this article with others:If you come to the Forex market, you will notice such thing like EUR/USD 1.34. This symbol means that 1 Euro is equal to 1.34 US dollars. By this example, then you will know that the first listed currency is the base currency in which its value will always be 1. You will also notice that this value is changing up and down. When the value is increasing, it means that the value of Euro is increasing while the value of US dollars is decreasing. Simply said, the Euro is gaining strength against US dollar. Or when the value is decreasing, it means that the Euro is weakening against US dollar.
The US dollar is not always be the base currency in the Forex market. There are some currency pairs that use other currency as its base. For example, AUD/USD, GBP/USD, EUR/USD in this pairs the British pound, Australian dollar and Euro are the base currencies.
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