Nickname for the GBP/USD currency pair.

Central Bank

A government organization that manages a country’s monetary policy.

Commodity Currencies

Currencies which depend heavily on the export of certain raw materials i.e. oil, timber, iron, coal and aluminum.

Consumer Price Index (CPI)

A measure of the average change in prices of a basket of consumer goods over a period of time.

Cross Rate

An exchange rate between two currencies, in which neither is the currency of the country where the pair is quoted. For example, in the US, a EUR/JPY quote is considered a cross rate.

Currency Pair

Two currencies that make up a foreign exchange rate.

Currency Risk

Unpredictable profits or losses associated with the change in price of one currency in relation to another; can be reduced by hedging, which offsets currency fluctuations.

Currency Symbols

Three letter symbol that represents a specific currency; for example, USD (U.S. Dollar).