The British pound and the US dollar GBPUSD pair is one of the oldest and most prevalent currency pairs in the forex trading market. This pair is also known as the “Cable” and this name dates back to the first submarine cable used to transport the British pound and the US dollar, which linked North America and Europe across the Atlantic Ocean The trading volume of this pair is about 17% of the total trading volume in the forex market.
The British pound occupies the third most important global reserve currency, while the US dollar is the first important currency at the global level. Thus, the pound sterling and the US dollar is one of the most important pairs distinguished by its high liquidity, and the British pound is the fourth most traded currency in the forex market.
Although this pair has high liquidity, there are currency pairs that have higher liquidity than the British pound and the US dollar, and therefore the price fluctuates greatly, in addition to being subject to the influence of many important economic data.
The most important indicators and economic data that affect the trading of the British pound
1. Interest rates: One of the most important indicators that directly affect the prices of the pound sterling is the decisions of the British Central Bank, especially its decisions regarding raising or lowering interest rates.
2. Consumer Price Index: This indicator is important as it measures the inflation rates in the country on which the central bank bases its decision on interest rates.[banner-group name='bannerforex']
3. Inflation rates: One of the most important economic data on which the British Central Bank depends in making its interest rate decisions is inflation rates. If it moves by more than 1% from the target, the central bank governor sends an open letter to monetary policy makers to discuss the situation around inflation rates.
4. The number of applications for unemployment benefits in Britain: This data is necessary to know the extent of the improvement of the British labor sector in general.
5. Various PMIs: The results of PMIs data for many sectors such as the service, industrial and construction sectors are important as they are a strong indicator of the current situation of those basic sectors that make up the economy.
There are also a number of reports and economic data for the United States that affect the performance of the pound sterling against the US dollar, the most important of which are:
US interest rates, GDP data, retail sales data, PMI data, and consumer price index data.
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