This indicator is an abbreviation for trading GBP (GBP) GBP against the US Dollar USD. The value of this indicator is the yield of US dollars (currency valuation) that we need to buy one pound sterling (the base currency) For example, if the price index 1.60000 We need US $ 1.6 to be able to buy £ 1. Purchase and sale of this indicator is known to speculate on the cable.
The price of GBP / USD is affected by several factors, including differences between interest rates in the two countries and declared by the "Bank of England BOE" US Fed FED wa For example, when the Feds intervene in the open market to support the US dollar, down GBP / USD index due to higher US dollar against the pound sterling.
In many cases, GBP / USD is characterized by an inverse relationship with the pair USD / CHF (US Dollar / Swiss Franc) is a positive and a relationship with a pair EUR / USD (GBP / USD), and this is because of the correlation between the euro and the pound and the Swiss franc.
Staging the currency symbol global daily turnover ratio
1 US dollar USD ($) 43.5%
2 Sterling GBP (£) 9.3%
The pound sterling since 757 AD: The oldest currency still in use in the world
GBP is the fourth most prevalent currency in the world after the US dollar and the euro and the Japanese yen and the third most currencies in terms of the size of the global reserve after the US dollar and the euro. The pound sterling from the German word which means silver coin, as the name was in use various German kingdoms constantly since the eighth century AD The name comes. In 1663 AD, was the use of the pound sterling for the first time in the United Kingdom unofficially has been determined the value of the pound sterling and 22 Hippocrates of pure gold. In 1694 was the establishment of the Bank of England (which is the official bank of the United Kingdom continues to this day) and immediately began issuing Banknotes in the name of the pound sterling. In 1801 and after the unification of the Kingdom of Scotland and the Kingdom of England into one kingdom known as Great Britain has been the use of the pound sterling officially in all British trade events, which amounted to 40% of the volume of world trade. During the American War of Independence in 1816, was determined the value of the pound sterling and 7.3 grams of pure gold what is known as The gold standard has maintained the pound at this value until the Central Bank of England's decision during the First World War in 1914 that the bank note paper has its own value without relationship British gold.
Sterling area and the British Empire
We have a very broad been using the pound sterling in the events and activities of the British trade in the colonies that do not lose sight of the sun what is known as the Pound Sterling area district, which included Canada, India, Egypt, Iraq and the Arab Union of South Yemeni capital of Aden, Sudan, Australia, the Bahamas, Bahrain, Bangladesh, Barbados, Lesotho, Basutoland, Bermuda, Botswana and the region Antarctica, Guyana British British and Belize, Honduras, and the territory of the Indian Ocean and the Solomon Islands and the British Somalia and the British Virgin Islands, Brunei, Burma, the Cayman Islands and the Sultanate of Ceylon, Cyprus, Falkland Islands, Fiji, Gambia, Ghana, Gibraltar and Islands Ellis (Kiribati and Tuvalu), Hong Kong, Iceland, Republic of Ireland (until 1971), Jamaica, Jordan, Kenya , Kuwait, Libya, Malawi, Malaysia, Maldives, Malta, Mauritius, Oman, New Zealand, Nigeria, Palestine during the British Mandate over Palestine, Pakistan, Zimbabwe, Seychelles, Sierra Leone, Singapore, South Africa, Namibia and the United Arab Emirates, Uganda, Zambia and the Sultanate of Zanzibar. All these areas linked currencies at a fixed exchange rate against the pound sterling.
Linking the pound sterling in 1940 dollars
During World War II, and to prevent the collapse of the pound value of sterling, the US government and the government of the United Kingdom has decided to link their currencies at a fixed exchange so-called system of Bretton Woods Bretton Woods system through a fixed rate GBP per four dollars US has this system continued valid until 1949 The British government decided to reduce the value of the pound sterling against the US dollar by 30% to become the new fixed value of US $ 2.80 and then in 1967 was the reduction of the value of sterling once again to become a fixed rate against the dollar to 2.40 US dollars per pound. In 1968, after the financial crisis in Britain, has been banned from Britain outlaws directed more than 50 pounds outside the UK has continued the ban until the year 1979.
The most important features of the pound sterling:
Who is the pound?
The official name Pound sterling
ISO 4217 code GBP
States that adopt sterling England and Wales, Scotland and Northern Ireland and the Falkland Islands, Gibraltar, St. Helena, Jersey, Guernsey and Manx
Currency banknotes 5.10, 20, 50.1002 million and - 500
Central Bank Bank of England
Inflation rate of 0.5% December 2014
Title II Telegraph
Print banknotes Bank of England
Casting coins Royal Mint
The oil crisis in 1973 and the pound sterling:
Affected the oil crisis of 1973 (the Arab boycott) a lot on the British economy and thus the value of the pound sterling, where he was the high prices of more than 25% during 1975, which led to a loss of investor confidence in sterling has published a lot of magazines, the leading economy and newspapers recommendations to sell the pound Sterling has led to a decline in the real price of US $ 1.04 per pound just before sterling recovery to the price of $ 1.60 US dollars to the pound sterling.
Linking Sterling deutsche mark in 1988 and the European currency in 1990:
Margaret Thatcher decided that the pound sterling that mimics the actions of Mark West Germany has been the link between the two currencies until 1990 and the unification of West Germany with East Germany, which led to the unification of the German mark and the east-west German mark and decrypt the link between the pound sterling and the German mark.
In 1990, Mrs. Thatcher decided to link the pound sterling European single currency Waco ECU a fixed exchange rate of 2.60 pounds per Waco.
Black Wednesday and sterling:
In the sixteenth of September 1992, failed to British financial body for maintaining the pound sterling price is higher than the minimum in front of the single European currency known as the crisis on Black Wednesday Black Wednesday and forced to decode the link between euro and the pound, which led to loss estimated between 3.4 billion to 27 billion pounds in one day. It is noteworthy that a major investor on the cable Mr. George Soros profit of more than 1.2 billion pounds in a single day across the speculation on the sale of the cable.
The pound sterling and the euro:
As a founding member of the European Union, can the United Kingdom adopt the euro currency at any time, but there are a lot of obstacles in this regard has been the senior officials in the United Kingdom, said that the decision not to join the single currency is the best of both the British economy and the European economy together. The abandonment of the pound is a problem for the British people, which is the pound sterling as one of Great Britain symbols and an integral part of its history. As many fear that joining the euro currency would hurt the British Economy, where many of the high cost of the currency and the unemployment rate. In a poll in 2008, voted 71% of Britons against joining the euro.
The financial crisis of 2008 and fall of the pound sterling prices:
We Sterling fell as soon as the exchange rate between the currencies of the price by the financial crisis in 2008, where he arrived Alastrini per pound to $ 1.23 only in 2009 to its lowest historical rate of the pound sterling against the euro at a price of 1.02 euros for pounds sterling. In May 2009, the central bank decided to England to pump 75 billion pounds a new pounds to the British scene (what was known as the UK quantitative easing) and agree to print 150 billion pounds last, the first time in British history that use this process in a non-experimental . Investors consider forex traders around the world on the move look Cecchekih as England Bank has actually create money for himself to be able to pay the government subscriptions and payments. Been raising the size of this new money until they reached the funds entered the market in this way gradually to more than £ 390 billion pounds at the beginning of 2015.
Factors affecting the price of the cable:
Data and comments from the Central Bank of England BOE in London
Founder of British monetary policy meeting of the Monetary Policy
Tusit Finance Authority of British Monetary Policy Committee MPC which is a meeting of the eight members of the so make important financial decisions through voting
European Financial Stability Facility's comments European Financial Stability Facility
Economic data from the non-agricultural sector
Letters of Heads of States and key European figures
Changes in the European price of the property
German industry data (the largest economies of the Union)
Gold prices, crude oil, coal and natural gas
The correlation between the pound sterling and the economy Alcolmn-Wealth:
Maintained the United Kingdom on the strong economic ties with its former colonies in English-speaking and inhabited by people of British origin (Anglo-Saxon) and the most important of these countries are Canada, Australia, where these two countries stand permanent addition to the United Kingdom and are considered the British Queen as a symbol of the highest state despite being fully independent states from Britain. Canada, the second richest country in the world reserves of oil and also the second largest country in the world in terms of area, supplying the British economy a lot of raw materials. Australia, in turn, is the richest country in the world reserves of gold ore and extend the British economy with confidence investors seeking safety provided by investing in precious metals.