Indices and FX: what's the pairing you watch?
Index-currency pairings — the Dax and EUR, the Nikkei and JPY, the S&P and the dollar — carry information between markets. Watching them together reveals the risk mood.
Which pairing do you follow?
- the index and the currency it informs
- what the current relationship is telling you
- the divergence you've noticed
Background: risk-on risk-off explained.
Background: Major, minor and exotic currency pairs explained
How to read a currency quote, which pairs count as majors, crosses and exotics, and why spreads and risks differ so much between them.
What are the seven major currency pairs?
EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, USD/CHF and NZD/USD.
What is a cross currency pair?
A pair of major currencies that doesn't include the US dollar, such as EUR/GBP or GBP/JPY.
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