Fiber (EUR/USD)

Fiber is the dealing-room nickname for EUR/USD, the euro quoted against the US dollar. The name is a modern echo of "cable": where the pound-dollar rate once travelled by telegraph cable, the euro arrived in 1999 into a market wired with fibre-optic links, and traders coined the term to match. EUR/USD is the most heavily traded currency pair in the world, which normally gives it the tightest spreads and deepest liquidity available to retail traders. It is driven by the policy gap between the European Central Bank and the Federal Reserve, by eurozone and US inflation and growth data, and by broad dollar sentiment. Activity peaks during the London-New York overlap.