Currency Pair’s Nicknames

What are Currency Pair’s Nicknames?

Currency pairs have developed a variety of nicknames, which are used by traders to quickly reference and discuss different currency pairs. These nicknames are derived from the currencies' symbols and the historical association of the countries with the respective currencies.

Major Currency Pair’s Nicknames

Major currency pairs consist of the most liquid and widely traded currencies worldwide, with the US Dollar (USD) featured as one of the currencies in the pair.

EUR/USD - The Fiber

One of the most widely traded currency pairs is the EUR/USD, also known as the "Fiber." This nickname is derived from the fact that the Euro is often called the "Fiber" due to its stability and reliability. The Eurozone and the United States are two of the largest economies in the world, and both currencies have a substantial impact on global trade and financial markets.

GBP/USD - The Cable

The GBP/USD, also known as "Cable," is one of the most widely traded and important currency pairs in the foreign exchange market. The nickname originated from the fact that in the past, during the 19th and early 20th centuries, the exchange rate between the British Pound (GBP) and the US Dollar (USD) was transmitted using telegraph cables that spanned the Atlantic Ocean. These cables allowed for real-time communication of currency prices between the financial centers of London and New York.

AUD/USD - The Aussie

The AUD/USD, also known as the ‘Aussie’, is a currency pair that is closely tied to the Australian economy, and this nickname has been extended to the AUD/USD currency pair. This pair is considered to be a commodity currency pair, meaning that it is closely tied to the price of commodities such as gold and oil.

The nickname ‘Aussie' for the Australian Dollar is derived from the term "Aussie" a colloquial nickname that is widely used in everyday language to refer to people or things associated with Australia.

USD/JPY - The Gopher

Another major currency pair is the USD/JPY, also known as the "Gopher." This nickname is thought to have originated from the fact that the Japanese yen is often associated with small, quick movements, similar to a gopher. This currency pair is a significant market that attracts traders and investors worldwide due to its liquidity, economic importance, and potential for volatility. The Japanese Yen's safe-haven status and the interplay between the US and Japanese economies make the USD/JPY pair an interesting and dynamic market to observe and trade.

USD/CHF - The Swissie

The USD/CHF, also known as the ‘Swissie’, is a currency pair that is closely tied to the Swiss economy, the nickname ‘Swissie’ is derived from the first syllable of "Swiss" and the "-ie" suffix, which is often added to create affectionate or informal terms. This pair is considered to be a safe-haven currency pair, meaning that it is often sought after by traders and investors during times of economic uncertainty.

Cross Currency Pair’s Nicknames

Cross-currency pairs do not include the US dollar as one of their components, setting them apart from the traditional majors. Instead, they involve two other major currencies, making them a playground for global traders seeking diversification.

EUR/GBP - The Chunnel

One of the most widely traded cross-currency pairs is the EUR/GBP, also known as ‘Chunnel’. This nickname is derived from the fact that the Euro and the British pound are separated by the English Channel, which is also known as the Chunnel. This pair is closely watched by traders and investors as it can provide insight into the economic health of both the Eurozone and the United Kingdom.

GBP/JPY - The Guppy

Another widely traded cross-currency pair is the GBP/JPY, also known as the ‘Guppy’. The nickname is believed to have originated from combining the first three letters of ‘GBP’ (representing the British Pound) and the first three letters of ‘JPY' (representing the Japanese Yen). By merging these letters, the term 'Guppy’ is formed. The Japanese yen and the British pound are both considered to be "safe-haven" currencies, meaning they are often sought after by traders and investors during times of economic uncertainty.

CHF/JPY - The Swissy

The CHF/JPY, also known as the "Swissy" is a cross-currency pair that is closely tied to the Swiss and Japanese economies. The Swiss franc and the Japanese yen are both considered to be "safe-haven" currencies, and this pair is often sought after by traders and investors during times of economic uncertainty. This pair is also considered to be a cross-currency pair as it does not involve the U.S. dollar.

AUD/JPY - The Aussie Yen

The AUD/JPY, also known as the "Aussie-Yen" is a cross-currency pair that is closely tied to the Australian and Japanese economies. The Australian dollar is often referred to as the "Aussie" and this nickname has been extended to the AUD/JPY currency pair. This pair is considered to be a commodity currency pair, as the Australian dollar is closely tied to the price of commodities such as gold and oil.

Exotic Currency Pair’s Nicknames

Exotic currency pairs are currency pairs that involve currencies from developing or emerging markets. These pairs are considered to be more volatile and less liquid than major currency pairs, and they often present unique trading opportunities.

USD/MXN - The Trump Trade

The USD/MXN is a currency pair that is closely tied to the Mexican economy. The Mexican peso is considered to be a high-yielding currency, and this pair is often sought after by traders and investors looking for higher returns. However, the Mexican economy is also sensitive to global economic conditions, particularly those in the United States, which makes this pair more volatile and risky.

There is no traditionally or widely accepted nickname for the USD/MXN (United States Dollar/Mexican Peso) currency pair. However, since late 2016, it has been informally referred to as the "Trump Trade" due to the increased volatility caused by proposed changes in US-Mexico trade policies by then-U.S. President Donald Trump.

The term "Trump Trade" was used to describe the fluctuations in the USD/MXN exchange rate as a result of Trump's announcements and tweets regarding potential tariffs, renegotiations of trade deals, and other economic policies involving Mexico. The uncertainty created by these policy proposals affected the Mexican Peso's value relative to the US Dollar, leading to heightened market reactions and increased trading activity in the currency pair during that period.

EUR/PLN - The Zloty

The EUR/PLN is a currency pair that is closely tied to the Polish economy, also known as the ‘Zloty’, the name has historical roots dating back to medieval times when Poland used to have a gold coin with the same name. The Polish ‘Zloty’ is considered to be a high-yielding currency, and this pair is often sought after by traders and investors looking for higher returns. However, the Polish economy is also sensitive to global economic conditions, particularly those in the European Union, which makes this pair more volatile and risky.

USD/ZAR - The Rand

Another example of an exotic currency pair is the USD/ZAR, also known as the "Rand." The South African Rand is considered to be a high-yielding currency, and this pair is often sought after by traders and investors looking for higher returns.

The South African currency is called the "Rand" because it takes its name from Witwatersrand, a region in South Africa known for its rich gold deposits. "Witwatersrand" is an Afrikaans word that translates to "white waters ridge" in English. The name is derived from the white waters of the gold-bearing streams in the area.