An encoding vector within a font layout, maps the characters XML codes to the character codes.
Usually the standard ASCII characters are mapped by default (i.e. they do not require an XML string to be defined in the font layout), but not the extended ones, like the accented characters of the Latin 1 character set. Different encoding is required for Unicode fonts.
A XML string is expressed as a Unicode number, as in Microsoft Windows character map, prefixed with &#x. For example, the character ‰, whose code is 137, has the Unicode number 2030, therefore, it is defined as ‰.
XML string and Euro character
If you modified an existing legacy font and added Euro symbol on the different position than the standard one (128), you have to map in your GN4 font layout the XML string € for the position of your Euro symbol. See also Euro symbol in GN4 fonts.
XML string and non breaking space
If you modified an existing legacy font and defined a non breaking space, you have to map it with XML string  . See also Non-breaking space in GN4 fonts.