Forex Currency pairs in Forex trading have been standardized by the IMF. The pairs most commonly traded are:
EUR/USD, the Euro and the U.S. dollar
USD/CHF, the U.S. dollar and the Swiss franc (sometimes called the Swissie)
GBP/USD, the pound sterling of Great Britain and the U.S. dollar (sometimes called the cable)
USD/JPY, the U.S. dollar and the Japanese yen
USD/CAD, the U.S. dollar and the Canadian dollar
AUD/USD, the Australian dollar and the U.S. dollar
These pairs account for 80% of all trades in the Forex market. They all involve the U.S. dollar, because its still the biggest economy in the world and one of the most inviting to trade. But this is also a holdover from the Bretton Woods Accord of 1944, which pegged all currencies to the U.S. dollar as a benchmark. Although the Accord was abandoned in the early 1970s, some of its effects are still evident in the market.
The first currency in the pair is known as the base currency, and its the important one. Its value is always one in the exchange rate, and it controls the direction of the trade and the chart. The second currency is called the cross.
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