GBPUSD (GBPUSD^)

Pairing – The amount of United States dollars (USD) that one can buy for every Great British pound (GBP).

Position

GBP – World’s fourth most traded currency

USD - World’s most traded currency

Important factors

• Cable Pair – This pairing is often referred to as ‘cable’ due to an undersea cable that used to transmit prices between London and New York.
• Interest rates – Interest rates have a heavy effect on each of these currencies, and in turn, inflation can affect interest rates.
• Economic Stability – There is some correlation between the economic stability of the UK and the US, but recent changes in both countries such as Brexit and the election of President Trump have both seen negative effects on the individual currencies of the two countries.