1. Foreign exchange refers to the purchase of a currency while selling another currency in the over-the-counter market.
2. Currency refers to a unit of transaction issued by a national government or central bank. The value of currency is used as the unit of measurement for transactions.
3. Refers to the first currency in a currency pair, which is the fixed currency in determining the price of a currency pair.
The euro is the most important benchmark currency in terms of daily turnover in the foreign exchange market.
, also known as the British pound, is the third largest benchmark currency.
Usdc-based currency pairs include USDCD, USDCD, USDCD;
Euro-based currency pairs include, EUR/JPY, EUR/GBP and EUR/CHF.
The pound is the benchmark currency against the yen.
It is the benchmark currency for the AUD/USD pair.
How does the foreign exchange market work?
Unlike most financial markets, the foreign exchange market has no specific trading venue.
The operation of the entire foreign exchange market is based on an electronic network between banks, institutions and individuals.
Depending on the time difference, it leaves Sydney every day, then transfers to Tokyo, London, New York.
How is the outer case affected?
Foreign exchange markets and prices are mainly influenced by international transactions and investment flows.
To some extent, foreign exchange prices are also influenced by national economies and policies, such as interest rate adjustments, inflation and political unrest (which heavily affect stock and bond markets).
