Financial News and Mobile Apps

Monday 20 January 2020

Currency Pairs and Nicknames

The most traded pairs of currencies in the world are called the Majors. They constitute the largest share of the foreign exchange market, about 85%, and therefore they exhibit high market liquidity. The Majors are: EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD and USD/CAD. In everyday foreign exchange market trading and news reporting, the currency pairs are often referred to by nicknames rather than their symbolic nomenclature. These are often reminiscent of national or geographic connotations. The GBP/USD pairing is known by traders as cable (also the cable), which has its origins from the time when a communications cable under the Atlantic Ocean synchronized the GBP/USD quote between the London and New York markets. GBP is also referred to by traders as quid. The following nicknames are common: "Swissy" or "Euro-Swissy" for EUR/CHF, Fiber for EUR/USD, Chunnel for EUR/GBP, Loonie and The Funds for USD/CAD, Aussie for AUD/USD, Gopher for USD/JPY, Guppy for GBP/JPY, Yuppy for EUR/JPY, and Kiwi or The Bird for the New Zealand Dollar NZD/USD pairing. New innovations include Barney for USD/RUB and Betty for EUR/RUB after the fictional characters the Rubbles in The Flintstones. Additionally, exotic pairs have earned more esoteric nicknames such as "Glock" for COP/SGN after the service pistol often carried by police officers (the ticker can be viewed as (COP'S G(u)N)). Nicknames vary between the trading centers in New York, London, and Tokyo. Care should be taken with the use of 'Betty, for EUR/RUB as, in London markets 'Betty' is used as cockney slang for Cable as in Betty Grable = Cable = GBP/USD.