The GBP/USD exchange rate, often called "Cable", shows how many US Dollars (USD) are needed to buy one British Pound (GBP). It is influenced by monetary policies from the Bank of England (BoE) and the Federal Reserve (Fed), along with inflation, economic indicators, Brexit-related developments, and risk sentiment. When the Pound strengthens, it reflects economic growth or higher interest rates in the UK, while a stronger Dollar often results from Fed tightening, market uncertainty, or global risk aversion.
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GBPUSD FAQs – Your Questions Answered
Why is GBP/USD called "Cable"?
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The name comes from the 19th-century transatlantic cable that transmitted exchange rates between London and New York.
What economic data impacts GBP/USD the most?
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BoE rate decisions, UK CPI, GDP, employment data, and PMIs are key drivers, alongside US Fed policy and macro data. Political developments and Brexit-related news also add volatility.
How volatile is GBP/USD?
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GBP/USD is one of the most volatile major pairs, averaging 80–120 pips daily, compared to EUR/USD's 60–80 pips. This creates opportunity but demands disciplined risk management.
What tools does TMGM offer for GBP/USD analysis?
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TMGM provides Trading Central analysis, Acuity sentiment data, an economic calendar, advanced MT4/MT5 charting, and a Market Sentiment Tool showing trader positioning.
What is the typical spread on GBP/USD?
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Spreads are generally wider than EUR/USD. TMGM offers spreads from 0.0 pips on Edge accounts and from 1.0 pips on Classic accounts.