What are currency exchange charts?


Quick Answer

Currency exchange charts are charts used to review market history and analyze rate trends for two or more currencies. The charts are useful in the analysis of both fiat and pegged currencies.

Continue Reading
What are currency exchange charts?
Credit: epSos .de CC-BY 2.0

Full Answer

The most common currency exchange charts feature an exchange pair. The first currency of the pair is called the base currency. The second currency is referred to as the terms currency or the quote currency. Most charts currently use the U.S. dollar as the base currency, as of 2015.

Charts use either a direct quote or an indirect quote. The amount of a particular currency used to buy a single U.S. dollar is listed as a direct quote. Japanese yen, Swiss francs and Mexican pesos tend to use direct quotes. In this case, the U.S. dollar is listed first, whereas with indirect quotes, the U.S. dollar is listed second. The British pound, New Zealand dollar and euro are commonly listed with an indirect quote.

Currency exchange charts are used to measure and compare currencies for any length of time. Some charts feature daily analysis of a currency pair. Other common charts can include information over years or even decades. Currency exchange charts are often classified into groups called crosses. G7 crosses, Nordic crosses, Pacific crosses and Eastern crosses are the most common forms of these groups.

Learn more about Currency & Conversions

Related Questions