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FOREX quotes in pairs of currencies

Each world currency is given a three letter code which is used in FOREX quotes. The most common currencies are USD (US dollars), EUR (European euros), GBP (United Kingdom pounds), AUD (Australian dollars), JPY (Japanese yen), CHF (Swiss francs) and CAD (Canadian dollars).
Prices of foreign exchange are indicated by FX quotes in pairs of currencies. The first currency is the 'base' and the second is the 'quote' currency. In this example:


EUR/USD = 1.30363


The currency pair is European euros and US dollars. The base currency (EUR) is always at '1' and the quote currency shows how much it costs to buy one unit of the base currency. In this example, 1 EUR costs 1.30363 US dollar. Or it costs 1.30363 US dollars to buy 1 euro.

When the price of the quote currency goes up it indicates that the base currency is becoming stronger one unit of the base currency will buy more of the quote currency. If the quote currency falls, however, the base currency is becoming weaker

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