A quotation of two different currencies is depicted by a currency pair. The first currency that is present in the pair is referred to as the base currency also called transaction currency. Whereas the second currency in the pair is know as quote currency #160; also referred to as payment currency and counter currency. By such a quotation it is depicted that how many units of the counter currency are required to buy one unit of the base currency.
For example if the quotation is EUR/USD 1.2500 then it means that one euro is exchanged for 1.25 US dollar. If the quote is moved from EUR/USD 1.2500 to EUR/USD 1.2510, then it showed that euro is getting stronger and the dollar is becoming weaker. On the other hand if the EUR/USD quote moves from 1.2500 to 1.2490 then it elaborates that euro is getting weaker while the dollar is getting stronger.
