GBP USD Forex Live Chart
Live chart of British Pound (GBP) versus United States Dollar (USD)
GBP USD - GB Pounds Sterling vs. US Dollar
The United States Dollar and the British Pound both make up a major pair. This is because both of them are the major currencies around the world. The GBP/USD does not form any commodity pair. This pair of currency is also known as “cable”. The exchange rate of the GBP and USD is determined with the value of GBP compared to the US dollar.
The British Pound:
The British pound sterling symbol is £ and the ISO code given to this currency is GBP. This is also commonly known as the pound. This is the official currency of the United Kingdom and its Crown dependencies like Channel Islands, the Isle of Man, and overseas territories of South Sandwich Islands with South Georgia. There are many nations that also the currencies named pound, but the sterling pound is different from them.
In the foreign exchange market the British sterling pound is the fourth most traded currency, which comes after the American dollar, Japanese Yen, and euro. In the global reserves the British sterling pound is also the third most held reserve currency. This holds about 4% of the global reserves. This currency has drawn the special IMF rights and forms the basket of currencies with the American dollar, Japanese Yen, and Euro to calculate the value of the drawing rights.
The United States Dollar
The United States dollar also known as the American dollar is the mostly widely traded currency in the world. An interesting fact about the United States dollar is that majority of its currency lies outside the geographical boundaries of the United States. The American dollar code is USD and its symbol is $. This is a floating currency and Federal Reserve is the governing body of it. The Federal Reserve is maintaining a very close control on the American dollar’s value. The adjustment of interest rates helps in controlling the American dollar value.
The American dollar is in the currency stability as it is the undisputed leader for the global investors. The United States financial industries are going to be hardened, and this will make this currency more reliable.
GBP USD Relationships
The GBP/USD is one of the largest pairs in terms of volume in the foreign exchange market. The two influential economies share the close trading relationship with each other. The correlation of the cable is naturally more than the EUR/USD relationship. The relatively stability and high volume of both of the nations, makes it less volatile. With the announcement of the Fed interest rates there are still trading opportunities. Even if one does not trade this pair, a person likes to keep close eye on the changes of this pair. This is because it has the influence on all markets around the world.