What is the "Cable"?
GBP/USD is aconsisting of the and the . This pair is known as the and it is the third most actively traded currency pair after and .
It shows how many US dollars (the) it costs to purchase one pound (the ).
Trading the GBP/USD or "Cable"
GBP/USD is considered to be very liquid because the pound is the 3rd most important reserve currency globally (the US dollar is the first) as well as the 4th most traded currency on the.
As currency pairs are affected by external factors that influence an individual currency value, the GBP/USD will fluctuate according to the difference inset by the and the . For example, any intervention by the Bank of England in the markets aimed at strengthening the pound would be likely to see a rise in the value of the GBP/USD. Conversely, if the Fed takes action to strengthen the dollar by intervening in the markets the value of the GBP/USD would be likely to fall.
GBP/USD is negativelyto the currency pair and positively correlated to . This is because the euro, the and the pound are all positively correlated to each other.
To learn more about the economic impact on currency pairs, visit:
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