We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • Asia #FX markets will be closely watching for developments in the ongoing China-led RCEP trade negotiations against the backdrop of slower global growth and rising protectionism. Get your market update from @ZabelinDimitri here: https://t.co/HZ8Loqj3Ey https://t.co/zTNLq11agI
  • How do you think markets will react to tomorrow's #FOMC meeting?
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: 0.05% Oil - US Crude: -0.38% Silver: -0.41% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/9AiehtJMsK
  • The Norwegian Krone and crude #oil prices will be in for turbulent week ahead of an avalanche of central bank rate decisions against the backdrop of political volatility in the middle east. Get your market update from @ZabelinDimitri here: https://t.co/1PKtivOiFv #OOTT https://t.co/IdHpQbAgNe
  • Fantastic thread on the #Fed including explainer on recent repo market cash crunch PS - I highly encourage giving @Trinhnomics a follow https://t.co/GYwqXuTfjY
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: -0.04% 🇪🇺EUR: -0.04% 🇬🇧GBP: -0.06% 🇯🇵JPY: -0.09% 🇦🇺AUD: -0.20% 🇳🇿NZD: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/x5I15C64eW
  • #USDJPY's uptrend has stalled, probably while the market awaits the #Fed. It's looking a little stretched but not seriously threatened. https://www.dailyfx.com/forex/technical/home/analysis/usd-jpy/2019/09/18/Japanese-Yen-Remains-Defensive-As-Dollar-Bulls-Eye-Key-Resistance-.html?utm_source=Twitter&utm_medium=Cottle&utm_campaign=twr
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.68%, while traders in France 40 are at opposite extremes with 81.16%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/k2BRFZYdBl
  • 🇦🇺 AUD Unemployment Rate (AUG), Actual: N/A Expected: 5.2% Previous: 5.2% https://www.dailyfx.com/economic-calendar#2019-09-19
  • Cautious "risk-off" tilt at early phase of Wednesday's session. Pro-risk #AUD and #NZD falling alongside #Nikkei225 futures as haven-linked #USD rises. Follow-through may be lacking until the #Fed passes later today https://t.co/0TLRTELdWv
All About Currency Crosses

All About Currency Crosses

2014-01-21 19:00:00
Walker England, Forex Trading Instructor
Share:

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

provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.