Cross pair

A cross pair, or cross, combines two currencies without the US dollar. Pairs with the euro are often called euro crosses, those with the yen yen crosses, and so on.

Crosses are useful because they isolate a relationship. If you think the euro will outperform the pound whatever the dollar does, EUR/GBP expresses that directly; trading EUR/USD and GBP/USD instead would mix dollar moves into the result.

They also have their own character. Yen crosses such as GBP/JPY are known for wide swings, while EUR/GBP and AUD/NZD — pairs of closely linked economies — often move in narrower ranges. Liquidity is generally lower than in the majors, which can mean jumpier behaviour in quiet hours.

A common misunderstanding is that crosses are immune to the dollar. In practice many cross prices are calculated from the two dollar pairs, so a large dollar move can still ripple through. When both currencies belong to the same region, that region's trading session is usually the most active.

On Sky Trade you will find crosses such as EUR/GBP and GBP/JPY. Compare with major pairs.