Never miss a story from Walker England

Subscribe to recieve updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from Daily FX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Walker England

You can manage you subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Talking Points

  • Foreign exchange rates are quoted in pairs
  • Major Pairs reference major currencies coupled with the USD
  • Cross Pairs reference major currencies coupled with a non USD currency

Foreign exchange ratesare quoted using two currencies, which then are combined to create a currency pair. The majority of these pairs are created using the G-8 currencies listed below which are then divided into two classifications, Major Pairs and Cross Pairs.

Today we will continue our review by briefly explaining exactly is meant by a currency cross.

All About Currency Crosses

Currency Cross Pairs

“Major Pairs” are considered when any of the Major G8 currencies are coupled with the USD, such as the EURUSD. A cross pair is one that does not include the USD. These currency cross pairs were created to ease the process in which traders could exchange money. Not only were transactions simplified without first having to convert to USD as a common medium, but now traders can also trade while avoiding USD volatility.

The other major benefit to trading cross pairs is for their strong trending markets. One example of a currency cross pair is the EURAUD. For the 2013 trading year the EURAUD moved a total of 3378 pips from low to high. This is nearly 4x the movement of the EURUSD! The EURUSD major only managed a move 848 pips, measured from low to high for the 2013 trading year. Other cross pairs for the Euro includes the EURGBP, EURAUD and EURJPY to name a few.So remember next time you open your platform there are opportunities outside of the majors, and look for the currency crosses.

Next: Trading The Euro - EURUSD (14 of 48)

Previous: Understanding The Forex Majors