DEFINITION of European Currency Quotation
A European currency quotation is otherwise known as an indirect quotation in the foreign exchange markets whereby the value of a foreign currency is stated as a per-unit measure of the U.S. dollar. This type of quotation shows how much foreign currency it takes to purchase one U.S. dollar.
BREAKING DOWN European Currency Quotation
For example, a European currency quote would be C$1.24 per US$1. This explains that it will take 1.24 Canadian dollars to purchase a single unit of U.S. currency. If you wanted to purchase US$1,000 it would cost C$1,240.
Currencies that are generally quoted European quotation style are the Canadian dollar, the Japanese yen, and the Swiss franc.
The opposite of European currency quotation is American currency quotation that is common when quoting the euro, the British pound and the Australian dollar. American currency quotation is often referred to a direct quotation.