Each currency pair consists of a ‘base’ currency (the currency on the left) and a

‘quote’ currency (on the right). Historically, the base currency was always the
bigger of the two

full order of priorities for the base currency (with regard to major and minor currencies) is as
follows:

1) Euro (EUR)
2) UK pound (GBP)
3) Australian dollar (AUD)
4) New Zealand dollar (NZD)
5) US dollar (USD)
6) Canadian dollar (CAD)
7) Swiss franc (CHF)
8) Japanese yen (JPY)

Cross Currencies are Really Two Transactions

Basically, when you trade a cross-currency pair, you are selling one currency for USD and
using that USD to buy the other one, effectively making two transactions – as we can see in
this diagram:
A cross rate is the exchange rate between two countries computed from each
country's exchange rate against a third country. For example, since most
currencies are quoted against the U.S. dollar, sometimes we need to work out
the cross rates for currencies other than the U.S. dollar.

equation for calculating cross currencies is as follows:

Currency A / Currency B = (Currency A / USD) x (USD / Currency B)

Cross-Rate Calculations with Bid-Ask Spreads

Example
The rate between Japanese ¥ and the U.S. $ is $:¥ = 119.05 - 121.95 and the rate
between the euro and the U.S. $ is $:€ = 0.7920 - 0.7932. The direct quote
between the yen and the euro in Japan will be: (¥119.05/$)/(€0.7932/$) =
¥150.0883/€, and (¥121.95/$)/(€0.7920/$) = ¥153.9773/€.
The lower rate is the bid, and the higher rate is the ask. Therefore, the rate
between yen and euro is €:¥ = 150.0883 - 153.9773.
In fact, each cross-currency transaction is the combination of two trades:

 The bid price: a bank will buy U.S. dollars with yen low ($:¥ = 119.05),
and sell U.S. dollars for euro high ($:€ = 0.7932). Thus, the bid price is €:
¥ = 150.0883.
 The ask price: a bank will sell U.S. dollars for yen high ($:¥ = 121.95),
and buy U.S. dollars with euro low ($:€ = 0.7920). Thus, the ask price is
€:¥ = 153.9773.

Note that in calculating the cross rates you should always assume that you have
to sell a currency at the lower (or bid) rate and buy it at the higher (or ask) rate,
giving you the worst possible rate. This method of quotation is how dealers
make money in foreign exchange.