A currency pair is the quotation of the relative value of a currency unit against the unit of another pares divisas forex in the foreign exchange market. Often the slash character is omitted, alternatively the slash may be replaced by and etc.
The most traded currency pairs in the world are called the Majors. 2510, the euro has increased in relative value, because either the dollar buying strength has weakened or the euro has strengthened, or both. 2490 the euro has become relatively weaker than the dollar. The rules for formulating standard currency pair notations result from accepted priorities attributed to each currency.
From its inception in 1999 and as stipulated by the European Central Bank, the euro has first precedence as a base currency. Therefore, all currency pairs involving it should use it as their base, listed first. Historically, this was established by a ranking according to the relative values of the currencies with respect to each other , but the introduction of the euro and other market factors have broken the original price rankings. For example, while historically Japanese yen would rank above Mexican peso, the quoting convention for these is now MXNJPY, i. Mexican peso has higher priority than Japanese yen.
Quotes against currencies other than USD are referred to as currency crosses, or simply crosses. The most common crosses are EUR, JPY, and GBP crosses, but may be against any other currency. For example, a British bank may use GBP as a base currency for accounting, because all profits and losses are converted to sterling. The most traded pairs of currencies in the world are called the Majors. In everyday foreign exchange market trading and news reporting, the currency pairs are often referred to by nicknames rather than their symbolic nomenclature. These are often reminiscent of national or geographic connotations.