The group of seven countries with the largest advanced economies in the world, which currently consists of Canada, France, Germany, Italy, Japan, the United States, and the United Kingdom.
Another name for the US Dollar.
Gross Domestic Product (GDP)
A way of measuring the size and health of a country's economy, taking into account household spending, investment, government spending, and net exports. When GDP increases, the economy grows as a result of business expansion and people spending more money.
A tone of language used to describe a situation that is seen to be aggressive.
A hedging transaction is one that protects an asset or liability against a fluctuation in the foreign exchange rate. Instruments used are varied and include Forwards, Futures, Options, and combinations of all of them. For commercial foreign exchange deals, the most common hedging tool is the Forward Contract.
Acronym for International Bank Account Number, a standardised means of identifying bank accounts used for European cross-border payments.
A Dealer's price that is not firm so can't be dealt on.
A currency that is normally quoted as Dollars per unit of currency, rather than the normal quote method of units of currency per Dollar. Pound Sterling is the most common example, eg: 1 Pound buys 1.8000 US Dollars.
Industrial Production Index
A coincident indicator measuring physical output of manufacturing, mining, and utilities.
An economic condition reflecting a continued rise in the general price level in conjunction with a related drop in purchasing power.
The specification of the banks at which funds shall be paid upon settlement.
A specialist broker who acts as an intermediary between market makers who wish to buy or sell FX, without revealing their identities to other market makers.
The foreign exchange rates at which international banks trade currencies with each other. The basis of the Interbank market.
A measure of economic activity that tends to change after change has occurred in the overall economy e.g. Consumer Price Index (CPI).
London Interbank Offered Rate - the benchmark interest rate for banks to lend to each other in the form of short-term loans.
Allows you to target a better exchange rate you’d like to transfer at, and if a positive market fluctuation occurs to reach it, your trade will be booked automatically to capitalise on the movement.
The ability of a market to accept large transactions with no impact on price stability.
Taking the left-hand side of a two-way quote i.e. selling the quoted currency.