What is the “Cable”?
GBP/USDWhat is the "Cable"? GBP/USD is a currency pair consistin... More is a consisting of the and the . This pair is known as the and it is the third most actively traded currency pairA currency pair is the price of one currency in relation to... More 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 currencyA reserve currency (also known as an "anchor currency") is ... More globally (the US dollar is the first) as well as the 4th most traded currencyWhat is currency? Currencies are the generally accepted medi... More 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 in set by the and the . For example, any intervention by the Bank of EnglandThe Bank of England is the central bank of the United Ki... More 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 negatively to the currency pair and positively correlated to . This is because the euro, the and the pound are all positively correlated to each other.
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