All Forex exchange rates are quoted in terms of currency pairs. Although it might look confusing initially, it is relatively easy to understand. Each currency pair is denoted in the format XXX/YYY as specified by ISO 4217 international three-letter code of the currency . XXX is the “Base Currency” and YYY is the price of one unit of XXX currency.
For example with regards to the pairs EUR/USD; GBP/AUD and USD/JPY, the base currency in those pairs are Euro, British Pound and US dollars respectively. The base currency will always have a numerical value of 1. Thus, GBP/AUD will indicate many units of Australian dollar is required to purchase 1 unit of British pound.
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