OK so I am pretty new to the game. And since I started telling people I am getting involved in the currency markets I get one question asked so often.
"So when should I change my money"
Friends going on holiday and wanting to exchange their money keep asking me the same question. And I get stuck for some silly reason and can not explain why.
OK so I am from the UK and obviously we use GBP. Now there are many crosses with GBP in the forex pairs.
Which one should I look at to explain that the GBP is going higher or lower?
For example if I get a question of hows the pound doing, I am going to France and need to exchange my GBP to EUR, when should I do it.
In that case should I look at the EUR/GBP pair and if it’s rising means that the pound is stronger to the EUR, therefore the higher it goes the more EUR you will be able to get.
The same goes with the dollar. There are so many pairs with the USD, when somebody asks me hows it doing, which one should I look at?
This may seem like a very stupid question but I can’t get my head around it.
Thanks in advance.
In your example, if EurGbp is rising then Euro is strengthening, so you get fewer Euros for your pound.
You’ll get loads if similar questions, suggest you take some time to study at the free school here
I think we all get this. People imagine that forex trading necessarily involves some insight into “fundamentals” and longer-term positions. I’m never able to answer it at all, and don’t want to be responsible for advising people when to change their money (because I don’t “predict”, and can’t, and I’d only get it wrong), and I say so openly. :8:
No - the opposite of that. If you look at EUR/GBP and that’s moving upwards, it means the [U]Euro[/U] is getting stronger, i.e. you’re getting [I]fewer[/I] Euros to the pound.
You would want to look at GBP/EUR (which not everyone quotes), for it to mean what you suggest above. 
You should probably tell them that [I]how[/I] they change their money is probably more important than [I]when[/I] given the massive spreads you can see in some money changing operations. 
Beyond that, you sort of answered your own question. If someone is thinking about going to France from England, than you’re looking at EUR/GBP. If someone is looking at traveling to Japan from Australia then it’s AUD/JPY.
If you’re asked generally about one currency, like the USD, then you can look at that currency’s index. The USD Index is the most often cited, but each of the major currencies has them.
May be you should not talk about your involvement in forex trading until you educate your self enough so you can talk about it.