Cross Currencies
A pair of currencies traded that does not include the US dollar. One foreign currency is traded for another without having to first exchange the currencies into US dollars.
.
The five “major” currencies are the US Dollar (USD), the Euro (EUR), the Swiss Franc (CHF), the British Pound (GBP) and the Japanese Yen (JPY). These currencies are usually quoted in terms of the base currency USD, such as USDEUR.
When these currencies are quoted in terms of each other rather than the USD, such as EUR/JPY (or EURJPY), it’s called a “cross” rate. Cross currencies are less liquid and therefore usually attract a higher spread than the “majors”.
.
RELATED TERMS
Free newsletter
Click here to receive TheBull's free newsletters on stocks, trading, investing and more.
- GM shares rise despite loss, tough... 25.10.2017 04:45 PM
- Takata close to filing for... 16.06.2017 12:16 PM
- Australia power grid leased to... 11.05.2017 03:35 PM
- Asian traders on edge ahead of key... 24.03.2017 04:07 PM
- Hong Kong stocks end morning... 14.03.2017 03:43 PM
- Asian markets extend global rally... 13.02.2017 03:56 PM
MoreRELATED ARTICLES
Shares rebound at open in Hong Kong, Shanghai
Hong Kong stocks rallied in the first few minutes of trade Tuesday, rebounding from the previous day's losses and tracking New York gains as dealers looked past the collapse of weekend talks to limit oil output.
Making Sense Of The EUR/CHF Relationship
The strong correlation between EUR and CHF currency pairs is undeniable. Find out what it means for forex traders.
The Eurozone Crisis And AAA Ratings
The eurozone's healthier economies' exposure to weaker economies is threatening their coveted AAA ratings.
RESOURCES & OFFERS
Free Investing Newsletter on Asian and Australian markets. Be ahead of the curve with TheBull.
Read more
Join CommSec now and get $600 free brokerage.
Find out more