Definition
Two currencies quoted against each other, written like EUR/USD (euro against US dollar) or USD/JPY (US dollar against Japanese yen).
The story
The first currency is the one being priced, and the second is what it's priced in. EUR/USD at 1.133 means one euro costs $1.133. USD/JPY at 158 means one dollar costs 158 yen. When USD/JPY rises, the dollar is strengthening against the yen.
Why markets watch it
Currency news is written in pairs, so reading the order is the key to reading the headline.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms