Exchange Rates: Reciprocals, Forwards and Factor Currents Rates

1 divide exchange rate offers the reciprocal of the exchange rate. Reciprocal was the word used in the old days and it was a matter of course. Today, reciprocal means opposite and most today associate reciprocal as opposite and its termed opposite by today’s trading crowd.

1+ is vital to factor an interest rate to obtain a true interest rate because interest rates are offered and seen by the public as a percentage.

1000 becomes vital to factor not only exchange rates but Forward exchange rates.

Most important formula in all FX trading is

Interest Rate differential X number of days X Outright or Interest rate base divide by Day Count ( 360 or 365) X Spot price X 100.

Forward exchange rates are factored also by Forward points as Spot price + divide by Forward points divide by 1000. Spot + answer to forward points divide 1000 = Forward exchange rate.

Easier ways exist to accurately trade to a long term target.

EUR/USD 1 divide current 1.1796 = USD/EUR 0.8477. Opposites hold true as 1 divide USD/EUR 0.8477 = EUR/USD 1.1796.

EUR/JPY 1 divide Current 124.97 = JPY/EUR 0.0080019. Must take JPY pairs to minimum 7 decimal places to the right.

EUR/JPY 1 divide 1.2497 = JPY/EUR 0.80019204

See the difference.

EUR/JPY exchange rate is found by EUR/USD X USD/JPY

1 Divide current EUR/CHF 1.0788 = CHF/EUR 0.9269.

EUR/CHF exchange rate is found by EUR/USD X USD/CHF

EUR/CAD 1 divide current 1.5775 = CAD/EUR 0.6339.

EUR/CAD exchange rate is found by EUR/USD X USD/CAD

EUR/NZD 1 divide current 1.7821 = NZD/EUR 0.5611.

EUR/NZD exchange rate is found by divide EUR/USD by NZD/USD

NZD/EUR exchange rate is found by NZD/USD divide EUR/USD

EUR/AUD 1 divide current 1.6501 = AUD/EUR 0.6060.

EUR/AUD exchange rate is found by EUR/USD Divide AUD/USD

AUD/EUR exchange rate is found by AUD/USD divide EUR/USD

EUR/GBP 1 divide current 0.9025 = GBP/EUR 1.1090.

EUR/GBP exchange rate is found by EUR/USD divide GBP/USD

GBP

GBP/USD 1 divide by current 1.3054 = USD/GBP 0.7660.

Opposite holds true as 1 divide USD/GBP 0.7660 = GBP/USD 1.3054.

GBP/JPY 1 divide current 138.34 = JPY/GBP 0.00722856

GBP/JPY exchange rate is found by GBP/USD X USD/JPY

GBP/CHF 1 divide by current 1.1945 = CHF/GBP 0.8371.

GBP/CHF exchange rate is found by GBP/USD X USD/CHF.

GBP/CAD 1 divide current 1.7471 = CAD/GBP 0.5723.

GBP/CAD exchange rate is found by GBP/USD X USD/CAD

GBP/NZD 1 divide current 1.9733 = NZD/GBP 0.5067

GBP/NZD exchange rate is found by GBP/USD Divide NZD/USD

NZD/GBP exchange rate is found by NZD/USD divide GBP/USD

GBP/AUD 1 divide current 1.8266 = AUD/GBP 0.5474

GBP/AUD exchange rate is found by GBP/USD divide AUD/USD

AUD/GBP exchange rate is found by AUD/USD divide GBP/USD

AUD

AUD/USD 1 divide current 0.7138 = USD/AUD 1.4009

USD/AUD 1 divide current 1.4009 = AUD/USD 0.7138

AUD/JPY 1 divide 75.73 = JPY/AUD 0.01320480

AUD/JPY exchange rate is found by USD/JPY X AUD/USD

AUD/CHF 1 divide current 0.6538 = CHF/AUD 1.5295

AUD/CHF exchange rate is found by AUD/USD v USD/CHF

AUD/CAD 1 divide current 0.9566 = CAD/AUD 1.0453

AUD/CAD exchange rate is found by AUD/USD X USD/CAD

AUD/NZD 1 divide current 1.0799 = NZD/AUD 0.9260

AUD/NZD exchange rate is found by AUD/USD divide NZD/USD

NZD/AUD exchange rate is found by AUD/USD divide NZD/USD

NZD

NZD/USD 1 divide current 0.6605 = USD/NZD 1.5140

NZD/JPY 1 divide current 70.08 = JPY/NZD 0.01426940

Or 1 divide 0.7008 = JPY/NZD 1.4269

NZD/JPY exchange rate is found by NZD/USD X USD/JPY

NZD/CHF 1 divide current 0.6051 = CHF/NZD 1.6526.

NZD/CHF exchange rate is found by NZD/USD X USD/CHF

NZD/CAD 1 divide current 0.8855 = CAD/NZD 1.1293

NZD/CAD exchange rate is dound by NZD/USD X USD/CAD

CAD

USD/CAD 1 divide current 1.3405 = CAD/USD 0.7459

USD/CAD exchange rate is found by 1 divide CAD/USD

CAD/CHF 1 divide current 0.6829 = CHF/CAD 1.4643

CAD/CHF exchange rate is found by USD/CHF divide USD/CAD

CHF/CAD exchange rate is found by USD/CAD divide USD/CHF

CAD/JPY 1 divide current 79.11 = JPY/CAD 0.01264062

Or

1 divide 0.7911 = 1.264062697

CAD/JPY exchange rate is found by USD/JPY divide USD/CAD

JPY/CAD exchange rate is found by USD/CAD divide USD/JPY

CHF

USD/CHF 1 divide current 0.9151 = CHF/USD 1.0927

CHF/USD 1 divide 1.0927 = USD/CHF 0.9151

CHF/JPY 1 divide current 115.96 = JPY/CHF 0.0086236

CHF/JPY exchange rate is found by USD/JPY divide USD/CHF

JPY/CHF exchange rate is found by USD/CHF divide USD/JPY

JPY

USD/JPY 1 divide current 106.11 = JPY/USD 0.00942418

JPY/USD 1 divide current 0.00942418 = USD/JPY 106.11

 

Brian Twomey

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