Take a look at our list of the financial terms associated with trading and the markets. From beginners starting their trading journey to experts with decades of experience, all traders need to clearly understand a huge number of terms.
The euro to pound Sterling exchange rate is identified by the abbreviation EUR/GBP. The pairing accounts for 2% - US$100 billion - of all daily FX transactions. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. GBP is the 4th most-traded currency, accounting for 13% of all daily trades.
The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar. This weakens the EUR/GBP exchange rate when the dollar is strong, even if USD strength is pushing Sterling lower elsewhere.
Since the UK's vote in 2016 to leave the European Union, politics has become a stronger driver of movement for the EUR/GBP exchange rate. Uncertainty over the future relationship between the UK and the bloc weighs on the pairing, with GBP the more affected as economists agree the UK will come off worse.
The euro to Japanese yen exchange rate has the acronym EUR/JPY. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. The Japanese yen is the 3rd most-traded currency, involved in 22% of all daily currency trades. EUR/JPY accounts for 1.6% of all daily currency trades; $79 billion per day.
While a strong US Dollar can weaken demand for the Japanese yen, it has a much stronger impact upon the euro. This means that in times of safe-haven demand the EUR/JPY exchange rate falls and, although the euro is not a high-beta currency, the pairing appreciates when risk-appetite is strong.
Both the European Central Bank and the Bank of Japan maintain ultra-loose monetary stimulus, but the ECB has recently taken tentative steps towards normalisation. Although negative rates are unlikely to disappear any time soon in either economy, the fact the ECB is in more of a position to adjust borrowing costs stands in the euro's favour.
The euro to Polish zloty exchange rate has the abbreviation EUR/PLN, and is classed as an exotic currency pair. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The Polish Zloty is the 22nd most active currency, accounting for 0.7% of average daily turnover. US$13 billion worth of EUR/PLN is traded each day.
The euro is the currency of the Eurozone, which is overseen by the ECB. The euro has an inverse correlation with the US Dollar.
EUR/PLN strengthens in times of market uncertainty. Poland is an emerging market economy; it's assets are higher-yielding, but also more volatile.
The zloty also reflects the strength or weakness of the Eurozone economy due to the strong trading relationship between Poland and the Eurozone, as well as the fact that Poland could eventually become a member of the currency bloc. This can soften the upside impact of positive Eurozone data upon the EUR/PLN pairing.
EUR/HUF is the abbreviation for the euro to Hungarian forint exchange rate. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The forint is the 26th most-active currency, accounting for just 0.3% of daily transactions. US$5 billion worth of EUR/HUF is traded each day.
The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
EUR/HUF strengthens in times of market uncertainty. As an emerging market currency, the forint is popular in times of confidence but is sold in favour of safer, lower-yielding assets when volatility increases.
Compared to its emerging market peers, Hungary has a small level of foreign currency debt, providing some insulation for the economy and its currency against external disruption.
EUR/AUD is the abbreviation for the euro to Australian dollar exchange rate. The pairing accounts for 0.3% of the average daily forex trading volume across the globe, which equates to US$16 billion.
The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar. However, the impact of this upon the euro is lessened when trading against the Australian dollar, because the “Aussie” also moves inversely to the US Dollar.
While not a safe-haven asset, the euro is considered more stable than the Australian dollar, meaning that the EUR/AUD/ pairing often strengthens in times of market pessimism, and weakens when risk-demand is elevated.
The Australian economy is highly-reliant upon exports of iron ore, for which Australia accounts for over 50% of the global supply. Changes in the market price can have a strong effect upon EUR/AUD.
EUR/CAD is the abbreviation for the euro to Canadian dollar exchange rate. The pairing accounts for around 0.3% of daily forex trading across the globe; the equivalent of US$14 billion.
The euro is the currency of the 19-nation Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar. However, the impact of this upon the euro is lessened when trading against the Canadian dollar, which also often moves inversely to the dollar.
The Canadian dollar is highly-sensitive to the price of crude oil, as this is Canada's main export. When oil prices fall, the outlook for the Canadian economy weakens, pushing the EUR/CAD exchange rate higher. When oil prices rise, the opposite happens.
Euro strength is influenced by the economic health of the Eurozone, which experienced a debt crisis in 2012 that saw several of its member states requiring bailouts.
EUR/CZK is the abbreviation for the euro to Czech koruna exchange rate. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The koruna is the 28th most-traded currency, accounting for just 0.3% of daily transactions.
The euro is the currency of the 19-nation Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
The Czech economy is strongly intertwined with that of the Eurozone; in particular Germany, which receives the bulk of Czech exports. Recent strength in the Eurozone has benefited the Czech Republic, contributing to an unemployment rate that is amongst the lowest in Europe.
In April 2017, the Czech National Bank exited its exchange rate commitment to cap CZK strength, implemented in November 2013, allowing the currency to fluctuate unrestrained.
EUR/NZD is the abbreviation for the euro to New Zealand dollar exchange rate. The euro is the 2nd most-traded currency, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded every day. The New Zealand dollar is the 10th most-traded currency, accounting for 2.1% of daily transactions. US$104 billion worth of NZD is traded daily.
The euro is the currency of the 19-nation Eurozone, overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
However, the impact of this upon the euro is lessened when trading against the New Zealand dollar, which also often moves inversely to the dollar.
The New Zealand dollar is highly-sensitive to commodity prices. Dairy is the country's main industry; when dairy prices fall, the outlook for the New Zealand economy weakens, pushing the EUR/NZD exchange rate higher. When dairy prices rise, the opposite happens.
EUR/SEK is the abbreviation for the euro to Swedish Krona exchange rate. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The Swedish Krona is the 9th most-traded currency, accounting for 2.2% of daily transactions. US$112 billion worth of SEK is traded daily.
The euro is the currency of the 19-nation Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
The Swedish krona shares a strong correlation with its Scandinavian peers the Norwegian krone and the Danish krone. These currencies - which all translate as “crown” - came about in 1873 when Sweden and Denmark formed the Scandinavian Monetary Union, backed by the gold standard. Norway joined two years later. When the union was dissolved after World War Two, the countries independently kept the currency.
EUR/TRY is the abbreviated form of the euro to Turkish lira exchange rate, one of the exotic currency pairs. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The lira is the 16th most active currency, accounting for 1.4% of average daily turnover.
The euro is the currency of the Eurozone, which is overseen by the ECB. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
The EUR/TRY pairing appreciates in times of market uncertainty. Turkey is an emerging market and relies heavily upon the EU for both imports and exports; weakness in the Eurozone economy is therefore a bad sign for Turkey as well.
The Turkish economy is largely fuelled by foreign currency loans, so a strong euro or US Dollar can lead to further weakness in the lira as markets fear the impact of higher credit costs for Turkey's corporations.
The euro to Swiss franc exchange rate is identified by the abbreviation EUR/CHF. On average US$44 billion worth of euros are converted into Swiss francs every day, making up 0.9% of the total global forex volume. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. the Swiss franc is the 7th most-traded currency, and is involved in 4.8% of all daily trades.
The euro and the Swiss franc share a strong correlation; the franc was actually pegged to the euro until January 2014, where the Swiss National Bank shocked markets by allowing the currency to float free - a move which saw CHF surge around 30% in a single day.
The EUR/CHF pair is likely to weaken in times of market uncertainty; the Swiss franc is viewed as a safe haven asset, while the fate of the Eurozone forever hangs in the balance as political and economic developments cause tension between its constituent nations.
The euro to Norwegian krone exchange rate has the acronym EUR/NOK. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. The krone is the 13th most-trade currency, accounting for 1.7% of all daily forex activity. Around $US28 billion worth of EUR/NOK - 0.6% of the total daily FX volume - is traded each day.
The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
The Norwegian economy is strongly-reliant upon crude oil and natural gas; the nation is one of the 5 top exporters of gas and oil, with the sector accounting for 22% of Norwegian GDP and 67% of the country's exports. The EU is an important trade partner for Norway, accounting for 72% of its trade. Eurozone economic data can therefore have an impact upon NOK as well as EUR.
The euro to Romanian leu exchange rate has the abbreviation EUR/RON, and is classed as an exotic currency pair. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The Romanian leu the 34th most-active currency, accounting for just 0.1% of average daily turnover.
The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
While not a safe-haven asset, the euro is considered more stable than the Romanian leu, meaning that the EUR/RON strengthens in times of market uncertainty. Romania is an emerging market economy and is one of Europe's poorest nations. The country wanted to adopt the euro, but has so far failed to meet the criteria.
EUR/USD describes the euro (base currency) and US Dollar (quote currency) exchange rate and reflects the respective currency strength of the two largest economic blocs on the planet.
The EUR/USD exchange rate is the most traded currency pair in the world, accounting for 23.1% of all forex trading. Daily average volumes for EUR/USD trading amounts to more than $1 trillion.
As it is so actively traded and highly liquid, EUR/USD enjoys very low spreads. The euro makes up a very large weighting in the dollar index and as such the EUR/USD is closely correlated to the dollar index.
Much of the activity in the EUR/USD pair is driven by international business as well as speculators; the scale of the US and Eurozone economies means that many global corporations and banks have a need to convert large quantities of euros into US Dollars every day. The interest rate differential between the European Central Bank and the Federal Reserve tends to exert the greatest impact on EUR/USD.
The STOXX Europe 50 Index, also known simply as the Europe 50, is Europe's blue-chip index, comprising of 50 stocks from 17 countries; Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
The index peaked at 4,557.57 in July 2007 and hit a record low of 1,809.98 in March 2009.
Companies in the Healthcare industry make up a fifth of the index, while Banks is the second-largest sector represented, with a weighting of 15.6%. Personal & Household Goods is the third largest sector with a weighting of 12.3%, but Oil & Gas is only 10 basis points smaller.
The stocks are mostly from Great Britain (33.6%), Switzerland (18%), France (17.9%), and Germany (14.9%). The index includes a capping factor to ensure that it cannot be dominated by one single country or component.
Europe 50 index futures allow you to speculate on, or hedge against, changes in the price of major European stocks. Futures rollover on the second Friday of March, June, September, and December.
GBP/USD is the abbreviation for the pound Sterling to US Dollar exchange rate, also known as “cable”. It combines two very popular currencies; GBP is present in 13% of all daily forex trades, while USD is present in 88% of all trades.
On average US$649 billion worth of pound Sterling is traded every single day. The pair is highly liquid and therefore offers very low spreads.
The UK financial services industry, headquartered in London, is the financial gateway to Europe, and pound Sterling plays an important role in financial markets. Interest rate differentials are a key driver of volatility in the GBP/USD exchange rate.
Recently, political factors have seen their influence over the pairing grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Meanwhile, in the United States, the protectionist policies of President Donald Trump have raised questions over the outlook for trade.
The Australian dollar to Japanese yen exchange rate goes by the abbreviation AUD/JPY. The Australian dollar is often known as the “Aussie”, and is the 5th most-traded currency in the world, being involved in 6.9% of all daily forex trades. The Japanese yen is the 3rd most-traded currency, accounting for 22% of all daily trades.
The Australian dollar is a commodity-correlated currency and is sensitive to price changes in iron ore, of which Australia is the world's largest exporter. The Japanese yen is a safe-haven asset, and is popular in times of uncertainty. Falling risk appetite undermines the AUD/JPY pairing, while market confidence pushes it higher.
A key driver of AUD/JPY volatility is the interest rate differential between the two nations. Like other central banks, the Reserve Bank of Australia cut interest rates in response to the 2008 financial crisis, but Australia's strong economy limited the need for easing. In contrast, the Bank of Japan still maintains ultra-loose stimulus.
The pound Sterling to Australian dollar exchange rate is abbreviated to GBP/AUD/. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of pound Sterling is traded every single day. The Australian dollar accounts for 7% of all daily forex trading, making it the 5th most-popular currency on the exchange market. US$348 billion worth of AUD/ is traded every day.
Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Signs of upheaval in government as Downing Street tries to negotiate a Brexit deal, as well as fears that the UK will crash out of the EU with no deal in place, weigh heavily on Sterling.
The Australian Dollar is commodity-correlated; the domestic economy is highly-reliant upon exports of iron ore, for which Australia accounts for over 50% of the global supply.
The pound Sterling to Canadian dollar exchange rate is identified by the abbreviation GBP/CAD. GBP is the 4th most-traded currency, accounting for 13% of all daily trades; US$649 billion worth.
Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Signs of upheaval in government as Downing Street tries to negotiate a Brexit deal that pleases all sides of the debate, as well as fears that the UK will crash out of the EU with no deal in place, weigh heavily on Sterling.
The Canadian dollar is highly-sensitive to changes in the US Dollar, as well as the price of crude oil, as this is Canada's main export. When oil prices fall, the outlook for the Canadian economy weakens, pushing the GBP/CAD exchange rate higher. When oil prices rise, the opposite happens.
The pound Sterling to Swiss franc exchange rate is identified by the abbreviation GBP/CHF. GBP is the 4th most-traded currency, accounting for 13% of all daily trades; US$649 billion worth. The Swiss franc is the 7th most-traded currency, and is involved in 4.8% of all daily trades.
Since the UK's vote in 2016 to leave the European Union, politics has become a stronger driver of movement for the GBP/CHF exchange rate. Uncertainty over the future relationship between the UK and the bloc weighs on Sterling.
The Swiss franc is strongly-correlated to euro strength; the franc was actually pegged to the euro until January 2014, when the Swiss National Bank shocked markets by allowing the currency to float free.
The GBP/CHF pair is likely to weaken in times of market uncertainty; the Swiss franc is a safe-haven asset because of Switzerland's strong and stable economy. It is a wealthy nation with a strong banking sector and its citizens enjoy a great quality of life.
The pound Sterling to Japanese yen exchange rate is identified by the abbreviation GBP/JPY. GBP is the 4th most-traded currency, accounting for 13% of all daily trades; US$649 billion worth. The Japanese yen is the 3rd most-traded currency, involved in 22% of all daily currency trades.
Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Signs of upheaval in government as Downing Street tries to negotiate a Brexit deal that pleases all sides of the debate, as well as fears that the UK will crash out of the EU with no deal in place, weigh heavily on Sterling.
The GBP/JPY exchange rate is heavily-influenced by movement in the US Dollar. The Japanese yen is a safe-haven asset, meaning that it appreciates in times of low risk-appetite. However, when USD is strong the lower-yielding yen is less appealing.
The pound Sterling to Australian dollar exchange rate is abbreviated to GBP/AUD/. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of pound Sterling is traded every single day. The New Zealand dollar is the 10th most-traded currency, accounting for 2.1% of daily transactions. US$104 billion worth of NZD is traded daily.
Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Fears that the UK will crash out of the EU with no deal in place, weigh heavily on Sterling.
The New Zealand dollar is highly-sensitive to commodity prices. Dairy is the country's main industry; when dairy prices fall, the outlook for the New Zealand economy weakens, pushing the GBP/NZD exchange rate higher. When dairy prices rise, the opposite happens.
The pound Sterling to Romanian leu exchange rate has the abbreviation GBP/RON, and is classed as an exotic currency pair. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of GBP is traded every single day, making it the fourth most-active currency on the planet.
The Romanian leu the 34th most-active currency, accounting for just 0.1% of average daily turnover.
Recently, political factors have seen their influence over pound pairings grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. The monetary policy outlook is also key - after nearly ten years the Bank of England has begun to raise interest rates.
Romania is an emerging market economy and is one of Europe's poorest nations. The country wanted to adopt the euro, but has so far failed to meet the criteria. GBP/RON appreciates in times of market uncertainty.
The pound Sterling to Singapore dollar exchange rate is abbreviated to GBP/SGD. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of pound Sterling is traded every single day. The Singapore dollar accounts for 1.8% of all daily forex transactions, making it the 12th most-traded currency on the globe.
Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook.
The Singapore dollar has been allowed to float free by the Monetary Authority of Singapore (MAS) since 1985, but the range in which it is permitted to trade has never been disclosed. SGD has a weak correlation with the Chinese yuan. This, combined with a solid financial sector and property market, has made Singapore an attractive place for offshore investors, helping to keep the appeal of the local currency elevated.
The pound Sterling to Turkish lira exchange rate has the abbreviation GBP/TRY, and is classed as an exotic currency pair. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of GBP is traded every single day, making it the fourth most-active currency on the planet. The lira is the 16th most active currency, accounting for 1.4% of average daily turnover.
Recently, political factors have seen their influence over pound pairings grow. The 2016 vote in favouring of leaving the EU has created significant uncertainty regarding the UK economic outlook. The monetary policy outlook is also key.
Turkey is an emerging market and relies heavily upon the EU for both imports and exports; weakness in the Eurozone economy is therefore a bad sign for Turkey as well.
The Turkish economy is largely fuelled by foreign currency loans, so a strong euro or dollar strengthens GBP/TRY as markets sell the lira on fear of higher credit costs for Turkey's corporations.
The European Central Bank (ECB) is the central bank for the European Union's member states that have adopted the euro. The ECB is responsible for the management of the euro and for implementing monetary policy in the eurozone. It is independent of national governments and has the primary objective of maintaining price stability in the eurozone.
Who controls the European Central Bank?
As stated above, the European Central Bank (ECB) is independent from national governments and political influences. It is governed by the Governing Council, which is composed of the six members of the Executive Board and the governors of the national central banks of the 19 European Union (EU) member states that have adopted the euro as their currency. The President of the ECB, currently Christine Lagarde, is appointed by the European Council
The FXE, also known as CurrencyShares Euro Trust, tracks the changes in the value of the euro relative to the US Dollar. An ETF is the easiest way for a trader to buy exposure to foreign currency markets. These funds use cash deposits or futures contracts to track the euro's movements over time.
This ETF provides investors with an opportunity to invest in EUR/USD, such as those who think that the US Dollar is weakening or think that the Euro is strengthening. It tracks the EUR/USD exchange rate very well and is an extremely liquid fund.
The Opening Price is the price at which a security first trades upon the opening of an exchange on a trading day. It is important to note that it may not identical to the previous day’s closing price. Also, for new stock offerings (IPO etc), Opening Price refers to the initial share price at the beginning of trade of the first day. Yet there are some cases when an opening price will also be the share price which was established by the first trade of the day, instead of being based on a price that was already in place when at the beginning of trade of that day at that specific exchange.
How is opening price calculated?
The opening price is can be calculated by taking the first trade price executed in that trading session. In case of stock trading it is the price of the first trade executed on the exchange when the market opens. Opening price is usually used to calculate the performance of the stock or any other asset for the day.
What is the difference between opening price and closing price?
The opening price is the price of an asset at the start of a trading session, while the closing price is the price of an asset at the end of a trading session.
Who sets the opening price of a stock?
The opening price of a stock is typically set by the stock exchange or market maker responsible for trading that stock.
Energy Select Sector SPDR Fund (XLE) tracks US energy companies within the S&P 500. This asset uses the Energy Select Sector Index as its tracking benchmark. The ETF is offers concentrated exposure to oil and gas industry giants, as the S&P500 favours large-caps. Nevertheless, it is fairly representative of the whole energy market.
Just a few holdings make up a big part of the portfolio, and there are only 31 holdings in total. Top holdings for the benchmark index include Exxon Mobil Corp, Chevron Corp and ConocoPhillips.
Euro Bonds (FBGL) or German Government Bonds, are issued with original maturities of 10 and 30 years. Bunds are a highly liquid debt security as they are eligible to be used as insurance reserves for trusts and are accepted as collateral by the ECB.
Bunds are often used to determine the strength of the Eurozone is doing relative to Germany: Investors who are bearish about Germany’s obligations to the Eurozone may demand higher returns, pushing bond yields higher. However, those seeking a safe haven may accept lower yields. Bunds are influenced by interest rates and ECB monetary policy. The Germany 10Y Bond reached a high of 10.80% in September 1981 and a record low of -0.19% in July 2016.
The Australian dollar to Japanese yen exchange rate goes by the abbreviation AUD/JPY. The Australian dollar is often known as the “Aussie”, and is the 5th most-traded currency in the world, being involved in 6.9% of all daily forex trades. The Japanese yen is the 3rd most-traded currency, accounting for 22% of all daily trades.
The Australian dollar is a commodity-correlated currency and is sensitive to price changes in iron ore, of which Australia is the world's largest exporter. The Japanese yen is a safe-haven asset, and is popular in times of uncertainty. Falling risk appetite undermines the AUD/JPY pairing, while market confidence pushes it higher.
A key driver of AUD/JPY volatility is the interest rate differential between the two nations. Like other central banks, the Reserve Bank of Australia cut interest rates in response to the 2008 financial crisis, but Australia's strong economy limited the need for easing. In contrast, the Bank of Japan still maintains ultra-loose stimulus.
The euro to pound Sterling exchange rate is identified by the abbreviation EUR/GBP. The pairing accounts for 2% - US$100 billion - of all daily FX transactions. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. GBP is the 4th most-traded currency, accounting for 13% of all daily trades.
The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar. This weakens the EUR/GBP exchange rate when the dollar is strong, even if USD strength is pushing Sterling lower elsewhere.
Since the UK's vote in 2016 to leave the European Union, politics has become a stronger driver of movement for the EUR/GBP exchange rate. Uncertainty over the future relationship between the UK and the bloc weighs on the pairing, with GBP the more affected as economists agree the UK will come off worse.
The euro to Japanese yen exchange rate has the acronym EUR/JPY. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. The Japanese yen is the 3rd most-traded currency, involved in 22% of all daily currency trades. EUR/JPY accounts for 1.6% of all daily currency trades; $79 billion per day.
While a strong US Dollar can weaken demand for the Japanese yen, it has a much stronger impact upon the euro. This means that in times of safe-haven demand the EUR/JPY exchange rate falls and, although the euro is not a high-beta currency, the pairing appreciates when risk-appetite is strong.
Both the European Central Bank and the Bank of Japan maintain ultra-loose monetary stimulus, but the ECB has recently taken tentative steps towards normalisation. Although negative rates are unlikely to disappear any time soon in either economy, the fact the ECB is in more of a position to adjust borrowing costs stands in the euro's favour.
The euro to Polish zloty exchange rate has the abbreviation EUR/PLN, and is classed as an exotic currency pair. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The Polish Zloty is the 22nd most active currency, accounting for 0.7% of average daily turnover. US$13 billion worth of EUR/PLN is traded each day.
The euro is the currency of the Eurozone, which is overseen by the ECB. The euro has an inverse correlation with the US Dollar.
EUR/PLN strengthens in times of market uncertainty. Poland is an emerging market economy; it's assets are higher-yielding, but also more volatile.
The zloty also reflects the strength or weakness of the Eurozone economy due to the strong trading relationship between Poland and the Eurozone, as well as the fact that Poland could eventually become a member of the currency bloc. This can soften the upside impact of positive Eurozone data upon the EUR/PLN pairing.
EUR/HUF is the abbreviation for the euro to Hungarian forint exchange rate. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The forint is the 26th most-active currency, accounting for just 0.3% of daily transactions. US$5 billion worth of EUR/HUF is traded each day.
The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
EUR/HUF strengthens in times of market uncertainty. As an emerging market currency, the forint is popular in times of confidence but is sold in favour of safer, lower-yielding assets when volatility increases.
Compared to its emerging market peers, Hungary has a small level of foreign currency debt, providing some insulation for the economy and its currency against external disruption.
EUR/AUD is the abbreviation for the euro to Australian dollar exchange rate. The pairing accounts for 0.3% of the average daily forex trading volume across the globe, which equates to US$16 billion.
The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar. However, the impact of this upon the euro is lessened when trading against the Australian dollar, because the “Aussie” also moves inversely to the US Dollar.
While not a safe-haven asset, the euro is considered more stable than the Australian dollar, meaning that the EUR/AUD/ pairing often strengthens in times of market pessimism, and weakens when risk-demand is elevated.
The Australian economy is highly-reliant upon exports of iron ore, for which Australia accounts for over 50% of the global supply. Changes in the market price can have a strong effect upon EUR/AUD.
EUR/CAD is the abbreviation for the euro to Canadian dollar exchange rate. The pairing accounts for around 0.3% of daily forex trading across the globe; the equivalent of US$14 billion.
The euro is the currency of the 19-nation Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar. However, the impact of this upon the euro is lessened when trading against the Canadian dollar, which also often moves inversely to the dollar.
The Canadian dollar is highly-sensitive to the price of crude oil, as this is Canada's main export. When oil prices fall, the outlook for the Canadian economy weakens, pushing the EUR/CAD exchange rate higher. When oil prices rise, the opposite happens.
Euro strength is influenced by the economic health of the Eurozone, which experienced a debt crisis in 2012 that saw several of its member states requiring bailouts.
EUR/CZK is the abbreviation for the euro to Czech koruna exchange rate. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The koruna is the 28th most-traded currency, accounting for just 0.3% of daily transactions.
The euro is the currency of the 19-nation Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
The Czech economy is strongly intertwined with that of the Eurozone; in particular Germany, which receives the bulk of Czech exports. Recent strength in the Eurozone has benefited the Czech Republic, contributing to an unemployment rate that is amongst the lowest in Europe.
In April 2017, the Czech National Bank exited its exchange rate commitment to cap CZK strength, implemented in November 2013, allowing the currency to fluctuate unrestrained.
EUR/NZD is the abbreviation for the euro to New Zealand dollar exchange rate. The euro is the 2nd most-traded currency, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded every day. The New Zealand dollar is the 10th most-traded currency, accounting for 2.1% of daily transactions. US$104 billion worth of NZD is traded daily.
The euro is the currency of the 19-nation Eurozone, overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
However, the impact of this upon the euro is lessened when trading against the New Zealand dollar, which also often moves inversely to the dollar.
The New Zealand dollar is highly-sensitive to commodity prices. Dairy is the country's main industry; when dairy prices fall, the outlook for the New Zealand economy weakens, pushing the EUR/NZD exchange rate higher. When dairy prices rise, the opposite happens.
EUR/SEK is the abbreviation for the euro to Swedish Krona exchange rate. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The Swedish Krona is the 9th most-traded currency, accounting for 2.2% of daily transactions. US$112 billion worth of SEK is traded daily.
The euro is the currency of the 19-nation Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
The Swedish krona shares a strong correlation with its Scandinavian peers the Norwegian krone and the Danish krone. These currencies - which all translate as “crown” - came about in 1873 when Sweden and Denmark formed the Scandinavian Monetary Union, backed by the gold standard. Norway joined two years later. When the union was dissolved after World War Two, the countries independently kept the currency.
EUR/TRY is the abbreviated form of the euro to Turkish lira exchange rate, one of the exotic currency pairs. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The lira is the 16th most active currency, accounting for 1.4% of average daily turnover.
The euro is the currency of the Eurozone, which is overseen by the ECB. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
The EUR/TRY pairing appreciates in times of market uncertainty. Turkey is an emerging market and relies heavily upon the EU for both imports and exports; weakness in the Eurozone economy is therefore a bad sign for Turkey as well.
The Turkish economy is largely fuelled by foreign currency loans, so a strong euro or US Dollar can lead to further weakness in the lira as markets fear the impact of higher credit costs for Turkey's corporations.
The euro to Swiss franc exchange rate is identified by the abbreviation EUR/CHF. On average US$44 billion worth of euros are converted into Swiss francs every day, making up 0.9% of the total global forex volume. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. the Swiss franc is the 7th most-traded currency, and is involved in 4.8% of all daily trades.
The euro and the Swiss franc share a strong correlation; the franc was actually pegged to the euro until January 2014, where the Swiss National Bank shocked markets by allowing the currency to float free - a move which saw CHF surge around 30% in a single day.
The EUR/CHF pair is likely to weaken in times of market uncertainty; the Swiss franc is viewed as a safe haven asset, while the fate of the Eurozone forever hangs in the balance as political and economic developments cause tension between its constituent nations.
The euro to Norwegian krone exchange rate has the acronym EUR/NOK. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. The krone is the 13th most-trade currency, accounting for 1.7% of all daily forex activity. Around $US28 billion worth of EUR/NOK - 0.6% of the total daily FX volume - is traded each day.
The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
The Norwegian economy is strongly-reliant upon crude oil and natural gas; the nation is one of the 5 top exporters of gas and oil, with the sector accounting for 22% of Norwegian GDP and 67% of the country's exports. The EU is an important trade partner for Norway, accounting for 72% of its trade. Eurozone economic data can therefore have an impact upon NOK as well as EUR.
The euro to Romanian leu exchange rate has the abbreviation EUR/RON, and is classed as an exotic currency pair. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The Romanian leu the 34th most-active currency, accounting for just 0.1% of average daily turnover.
The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
While not a safe-haven asset, the euro is considered more stable than the Romanian leu, meaning that the EUR/RON strengthens in times of market uncertainty. Romania is an emerging market economy and is one of Europe's poorest nations. The country wanted to adopt the euro, but has so far failed to meet the criteria.
EUR/USD describes the euro (base currency) and US Dollar (quote currency) exchange rate and reflects the respective currency strength of the two largest economic blocs on the planet.
The EUR/USD exchange rate is the most traded currency pair in the world, accounting for 23.1% of all forex trading. Daily average volumes for EUR/USD trading amounts to more than $1 trillion.
As it is so actively traded and highly liquid, EUR/USD enjoys very low spreads. The euro makes up a very large weighting in the dollar index and as such the EUR/USD is closely correlated to the dollar index.
Much of the activity in the EUR/USD pair is driven by international business as well as speculators; the scale of the US and Eurozone economies means that many global corporations and banks have a need to convert large quantities of euros into US Dollars every day. The interest rate differential between the European Central Bank and the Federal Reserve tends to exert the greatest impact on EUR/USD.
The STOXX Europe 50 Index, also known simply as the Europe 50, is Europe's blue-chip index, comprising of 50 stocks from 17 countries; Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
The index peaked at 4,557.57 in July 2007 and hit a record low of 1,809.98 in March 2009.
Companies in the Healthcare industry make up a fifth of the index, while Banks is the second-largest sector represented, with a weighting of 15.6%. Personal & Household Goods is the third largest sector with a weighting of 12.3%, but Oil & Gas is only 10 basis points smaller.
The stocks are mostly from Great Britain (33.6%), Switzerland (18%), France (17.9%), and Germany (14.9%). The index includes a capping factor to ensure that it cannot be dominated by one single country or component.
Europe 50 index futures allow you to speculate on, or hedge against, changes in the price of major European stocks. Futures rollover on the second Friday of March, June, September, and December.
GBP/USD is the abbreviation for the pound Sterling to US Dollar exchange rate, also known as “cable”. It combines two very popular currencies; GBP is present in 13% of all daily forex trades, while USD is present in 88% of all trades.
On average US$649 billion worth of pound Sterling is traded every single day. The pair is highly liquid and therefore offers very low spreads.
The UK financial services industry, headquartered in London, is the financial gateway to Europe, and pound Sterling plays an important role in financial markets. Interest rate differentials are a key driver of volatility in the GBP/USD exchange rate.
Recently, political factors have seen their influence over the pairing grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Meanwhile, in the United States, the protectionist policies of President Donald Trump have raised questions over the outlook for trade.
The pound Sterling to Australian dollar exchange rate is abbreviated to GBP/AUD/. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of pound Sterling is traded every single day. The Australian dollar accounts for 7% of all daily forex trading, making it the 5th most-popular currency on the exchange market. US$348 billion worth of AUD/ is traded every day.
Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Signs of upheaval in government as Downing Street tries to negotiate a Brexit deal, as well as fears that the UK will crash out of the EU with no deal in place, weigh heavily on Sterling.
The Australian Dollar is commodity-correlated; the domestic economy is highly-reliant upon exports of iron ore, for which Australia accounts for over 50% of the global supply.
The pound Sterling to Canadian dollar exchange rate is identified by the abbreviation GBP/CAD. GBP is the 4th most-traded currency, accounting for 13% of all daily trades; US$649 billion worth.
Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Signs of upheaval in government as Downing Street tries to negotiate a Brexit deal that pleases all sides of the debate, as well as fears that the UK will crash out of the EU with no deal in place, weigh heavily on Sterling.
The Canadian dollar is highly-sensitive to changes in the US Dollar, as well as the price of crude oil, as this is Canada's main export. When oil prices fall, the outlook for the Canadian economy weakens, pushing the GBP/CAD exchange rate higher. When oil prices rise, the opposite happens.
The pound Sterling to Swiss franc exchange rate is identified by the abbreviation GBP/CHF. GBP is the 4th most-traded currency, accounting for 13% of all daily trades; US$649 billion worth. The Swiss franc is the 7th most-traded currency, and is involved in 4.8% of all daily trades.
Since the UK's vote in 2016 to leave the European Union, politics has become a stronger driver of movement for the GBP/CHF exchange rate. Uncertainty over the future relationship between the UK and the bloc weighs on Sterling.
The Swiss franc is strongly-correlated to euro strength; the franc was actually pegged to the euro until January 2014, when the Swiss National Bank shocked markets by allowing the currency to float free.
The GBP/CHF pair is likely to weaken in times of market uncertainty; the Swiss franc is a safe-haven asset because of Switzerland's strong and stable economy. It is a wealthy nation with a strong banking sector and its citizens enjoy a great quality of life.
The pound Sterling to Japanese yen exchange rate is identified by the abbreviation GBP/JPY. GBP is the 4th most-traded currency, accounting for 13% of all daily trades; US$649 billion worth. The Japanese yen is the 3rd most-traded currency, involved in 22% of all daily currency trades.
Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Signs of upheaval in government as Downing Street tries to negotiate a Brexit deal that pleases all sides of the debate, as well as fears that the UK will crash out of the EU with no deal in place, weigh heavily on Sterling.
The GBP/JPY exchange rate is heavily-influenced by movement in the US Dollar. The Japanese yen is a safe-haven asset, meaning that it appreciates in times of low risk-appetite. However, when USD is strong the lower-yielding yen is less appealing.
The pound Sterling to Australian dollar exchange rate is abbreviated to GBP/AUD/. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of pound Sterling is traded every single day. The New Zealand dollar is the 10th most-traded currency, accounting for 2.1% of daily transactions. US$104 billion worth of NZD is traded daily.
Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Fears that the UK will crash out of the EU with no deal in place, weigh heavily on Sterling.
The New Zealand dollar is highly-sensitive to commodity prices. Dairy is the country's main industry; when dairy prices fall, the outlook for the New Zealand economy weakens, pushing the GBP/NZD exchange rate higher. When dairy prices rise, the opposite happens.
The pound Sterling to Romanian leu exchange rate has the abbreviation GBP/RON, and is classed as an exotic currency pair. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of GBP is traded every single day, making it the fourth most-active currency on the planet.
The Romanian leu the 34th most-active currency, accounting for just 0.1% of average daily turnover.
Recently, political factors have seen their influence over pound pairings grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. The monetary policy outlook is also key - after nearly ten years the Bank of England has begun to raise interest rates.
Romania is an emerging market economy and is one of Europe's poorest nations. The country wanted to adopt the euro, but has so far failed to meet the criteria. GBP/RON appreciates in times of market uncertainty.
The pound Sterling to Singapore dollar exchange rate is abbreviated to GBP/SGD. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of pound Sterling is traded every single day. The Singapore dollar accounts for 1.8% of all daily forex transactions, making it the 12th most-traded currency on the globe.
Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook.
The Singapore dollar has been allowed to float free by the Monetary Authority of Singapore (MAS) since 1985, but the range in which it is permitted to trade has never been disclosed. SGD has a weak correlation with the Chinese yuan. This, combined with a solid financial sector and property market, has made Singapore an attractive place for offshore investors, helping to keep the appeal of the local currency elevated.
The pound Sterling to Turkish lira exchange rate has the abbreviation GBP/TRY, and is classed as an exotic currency pair. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of GBP is traded every single day, making it the fourth most-active currency on the planet. The lira is the 16th most active currency, accounting for 1.4% of average daily turnover.
Recently, political factors have seen their influence over pound pairings grow. The 2016 vote in favouring of leaving the EU has created significant uncertainty regarding the UK economic outlook. The monetary policy outlook is also key.
Turkey is an emerging market and relies heavily upon the EU for both imports and exports; weakness in the Eurozone economy is therefore a bad sign for Turkey as well.
The Turkish economy is largely fuelled by foreign currency loans, so a strong euro or dollar strengthens GBP/TRY as markets sell the lira on fear of higher credit costs for Turkey's corporations.
The European Central Bank (ECB) is the central bank for the European Union's member states that have adopted the euro. The ECB is responsible for the management of the euro and for implementing monetary policy in the eurozone. It is independent of national governments and has the primary objective of maintaining price stability in the eurozone.
Who controls the European Central Bank?
As stated above, the European Central Bank (ECB) is independent from national governments and political influences. It is governed by the Governing Council, which is composed of the six members of the Executive Board and the governors of the national central banks of the 19 European Union (EU) member states that have adopted the euro as their currency. The President of the ECB, currently Christine Lagarde, is appointed by the European Council
The FXE, also known as CurrencyShares Euro Trust, tracks the changes in the value of the euro relative to the US Dollar. An ETF is the easiest way for a trader to buy exposure to foreign currency markets. These funds use cash deposits or futures contracts to track the euro's movements over time.
This ETF provides investors with an opportunity to invest in EUR/USD, such as those who think that the US Dollar is weakening or think that the Euro is strengthening. It tracks the EUR/USD exchange rate very well and is an extremely liquid fund.
Energy Select Sector SPDR Fund (XLE) tracks US energy companies within the S&P 500. This asset uses the Energy Select Sector Index as its tracking benchmark. The ETF is offers concentrated exposure to oil and gas industry giants, as the S&P500 favours large-caps. Nevertheless, it is fairly representative of the whole energy market.
Just a few holdings make up a big part of the portfolio, and there are only 31 holdings in total. Top holdings for the benchmark index include Exxon Mobil Corp, Chevron Corp and ConocoPhillips.
Euro Bonds (FBGL) or German Government Bonds, are issued with original maturities of 10 and 30 years. Bunds are a highly liquid debt security as they are eligible to be used as insurance reserves for trusts and are accepted as collateral by the ECB.
Bunds are often used to determine the strength of the Eurozone is doing relative to Germany: Investors who are bearish about Germany’s obligations to the Eurozone may demand higher returns, pushing bond yields higher. However, those seeking a safe haven may accept lower yields. Bunds are influenced by interest rates and ECB monetary policy. The Germany 10Y Bond reached a high of 10.80% in September 1981 and a record low of -0.19% in July 2016.
The Opening Price is the price at which a security first trades upon the opening of an exchange on a trading day. It is important to note that it may not identical to the previous day’s closing price. Also, for new stock offerings (IPO etc), Opening Price refers to the initial share price at the beginning of trade of the first day. Yet there are some cases when an opening price will also be the share price which was established by the first trade of the day, instead of being based on a price that was already in place when at the beginning of trade of that day at that specific exchange.
How is opening price calculated?
The opening price is can be calculated by taking the first trade price executed in that trading session. In case of stock trading it is the price of the first trade executed on the exchange when the market opens. Opening price is usually used to calculate the performance of the stock or any other asset for the day.
What is the difference between opening price and closing price?
The opening price is the price of an asset at the start of a trading session, while the closing price is the price of an asset at the end of a trading session.
Who sets the opening price of a stock?
The opening price of a stock is typically set by the stock exchange or market maker responsible for trading that stock.
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