Typically, we can tell that the quotation for two diverse types of currencies is known as the currency pairs. It is the actual amount that should pay in one currency for a unit of other currency. For example, when the traders are quoted USD/EUR to 2.25, that means they can exchange 1 dollar and receive 2.25 euro. If one’s value changes, it creates an impact on the overall retail market. If the quotation of USD/EUR goes for 3.25 another day, that shows USD has appreciated relative to the Euro.
Major currency pairs
This definition differs among the traders in Singapore. But most of the professionals often include the popular pairs in their business. These are USD/JPY, USD/CHF, EUR/USD, and GBP/USD. The cross pairs and the commodity currencies are also regarded as the major ones. Here are the major categories of those pairs. These pairs are used widely in Forex business.
GBP/USD- Pound dollar
USD/JPY- Dollar yen
USD/CHF- dollar swiss frank
These pairs represent the world’s largest economy. These are used for trading in high volume. Higher volume can tend to lead the smaller spreads. The most popular and widely used currency pair is EUR/USD. Its nickname is ‘Fiber’. From the recent analysis, we found that EUR/USD completes 24% of total transactions. It ensures that it can continue the trade at compact spreads. High volume can often lead to a reduced-price difference between the offer and bids.