to your comprehensive top Forex Trading News resources

Appreciation – Appreciation describes when currency rises in value on the Forex market.

on
Forex Trading News TV

Below, you'll find extensive information on leading Forex Trading News articles and products
to help you on your way to success.

Forex Trading Education - CURRENCY PAIR

LiteForex.org

Forex Trading News Information

Forex Trading Education - CURRENCY PAIR

Reading a foreign exchange quote may seem confusing at first. However, it's really quite simple if you remember two things when starting your Forex trading education: 1) The first currency listed is the base currency 2) The value of the base currency is always 1.

The US dollar is the centerpiece of the Forex market and is normally considered the 'base' currency for quotes. In the "Majors", this includes USD/JPY, USD/CHF and USD/CAD. For these currencies and many others, quotes are expressed as a unit of 1 USD per the second currency quoted in the pair. For example, a quote of USD/JPY 120.01 means that one U.S. dollar is equal to 120.01 Japanese yen.

When the U.S. dollar is the base unit and a currency quote goes up, it means the dollar has appreciated in value and the other currency has weakened. If the USD/JPY quote we previously mentioned increases to 123.01, the dollar is stronger because it will now buy more yen than before.

The 3 exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). In these cases, you might see a quote such as GBP/USD 1.4366, meaning that one British pound equals 1.4366 U.S. dollars.

In these three currency pairs, where the U.S. dollar is not the base rate,