gbp/usd

The GBP USD is one of the three most traded currency pairs and is also one of the oldest. The GBP USD may also be written as GBP/USD.

It was initially traded by undersea cable between the U.S. and Great Britain, so the nickname cable is often used for the pair.

The GBP USD generally shows a strong correlation with the EUR USD currency pair. Britain’s economy is tied very closely to the European Union, with the important distinction that Britain still controls its own currency through the Bank of England (BOE).

As the U.S. has the same freedom, the USD GBP will often move more strongly on economic news than the EUR USD.

The abbreviation for the British pound and U.S. dollar (GBP/USD) currency pair or cross. The currency pair tells the reader how many U.S. dollars (the quote currency) are needed to purchase one British pound (the base currency).

The value of the GBP/USD pair is quoted as 1 British pound per X U.S. dollars. For example, if the pair is trading at 1.50 it means that it takes 1.5 U.S. dollar to buy 1 British pound.

The GBP/USD is affected by factors that influence the value of the British pound and/or the U.S. dollar in relation to each other and other currencies.

The interest rate differential between the Bank of England (BoE) and the Federal Reserve (Fed) will affect the value of these currencies when compared to each other.

When the Fed intervenes in open market activities to make the U.S. dollar stronger, for example, the value of the GBP/USD cross could decline, due to a strengthening of the U.S. dollar when compared to the British pound.

The GBP/USD tends to have a negative correlation with the USD/CHF and a positive correlation to the EURO/USD currency pairs. This is due to the positive correlation of the euro, Swiss franc and the British pound.

GBP/USD - The British Pound against the US Dollar is one of the oldest currency pairings in the world.

GBP/USD pair is often called 'The Cable', as the first transatlantic communication cable run across the floor of the Atlantic, connecting Great Britain with The United States, was used to transmit currency prices between the two economies.

'The Cable' remains a favorite of traders today, accumulating massive interest considering the size of The UK economy.

A term that is used for the GBP/USD or British Pound vs. US Dollar pair. "Cable" refers to the Atlantic Cable laid under the Atlantic Ocean in 1850. This enabled telegraphed messages with currency prices between London and New York Exchanges.

The pound sterling (GBP) is forecast to remain vulnerable against the US dollar (USD) on global foreign exchange markets as interest rate differentials between the US and UK continue to narrow.