Currency pairs are used to express exchange rates. Each pair includes two currencies: the base currency (listed first) and the quote currency (listed second). The price shows how much of the quote currency is needed to buy one unit of the base currency. For example, in EUR/USD, the price tells you how many U.S. dollars equal one euro.
Currency pairs are grouped into major, minor, and exotic categories.
Major pairs include widely traded currencies like USD, EUR, JPY, and GBP.
Minor pairs exclude the U.S. dollar but still involve actively traded currencies.
Exotic pairs include one major currency and one currency from a smaller or emerging economy.
Exchange rates change constantly due to economic reports, interest rate decisions, political events, and global market activity. Currency pairs help traders, businesses, and institutions manage international payments, investments, and risk.
Currency pairs are the foundation of the FX market. They allow traders to understand exchange rates, make investment decisions, and manage currency exposure across borders.
Traders choose pairs based on liquidity, volatility, and their understanding of the underlying economies. Major pairs offer high liquidity and smaller spreads, making them easier for active trading. Exotic pairs can offer larger price swings, but they often come with wider spreads and more risk.
Interest rate changes, inflation, employment data, economic growth, and geopolitical developments all influence currency prices. Updates from central banks or unexpected global events can cause sharp movements. Traders watch these factors closely to understand price shifts.
The base-then-quote format makes pricing and comparison straightforward. If GBP/USD rises, traders instantly know the British pound is strengthening against the U.S. dollar. This consistent format allows fast decision-making in a fast-moving market.
If USD/JPY trades at 145.50, it means one U.S. dollar is worth 145.50 Japanese yen. If the rate rises to 146.20, the dollar has strengthened relative to the yen.
FinFeedAPI’s Currency API provides real-time and historical exchange rate data for major, minor, and exotic currency pairs. Developers use this data to build conversion tools, trading platforms, forecasting models, and financial analytics systems.
