The History of British Pound / U.S. Dollar

This is in reference to a long cable under the Atlantic past tense, used to synchronize the exchange markets of London and New York, the pair GBP / USD (British pound / U.S. dollar) was nicknamed the “Cable”.

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Representing approximately 14% of the total volume of purchases and sales of foreign currency (if we compare this volume to 200%) performed annually on Forex; Cable is the most volatile of the major currency pairs that are traded.


The contemporary evolution of the GBP / USD is initially shows a steady appreciation of the pound sterling against the dollar U.S from 2002 to early 2005: GBP / USD = 1.4084 in January 2002, GBP / USD = 1.9455 THE END OF 2004.


Correction occurs later in the course of the year 2005 (GBP / USD = 1.7211 at the end of 2005), but the monetary policy of the Bank of England, in periods of high growth in British economy, leads to rise sharply (beyond 5%) its interest rates between 2006 and 2007: the British pound appreciates against the dollar for two years until parity is reached historical GBP / USD = 2.1161 7 November 2007, its highest ever achieved in the past 26 years.


According to analysts, operations “carry trade” (massive purchase of sterling placed high rates using other currencies with interest rates lower) then play a major role in the concomitant appreciation of the pound cross and GBP / USD.


In the turmoil of the subprime crisis brings with it large parts of the banking sector and the City, and the pound with GBP / USD begin from the fall of 2007 a ​​decline that accelerated after the month of August 2008: GBP / USD = 1.9960 July 14, 2008, GBP / USD = 1.3500 January 23, 2009 (Cable lowest in 24 years), and even 1.3717 in March 2009.


Then a correction is made, as well as the EUR / GBP, which leads the pair GBP / USD to the value of 1.69 August 4, 2009 (23% in 4 months), the pound then lost again some ground in autumn 2009 (GBP / USD = 1.5840 in October 2009).

Originally posted 2013-05-09 07:42:09. Republished by Blog Post Promoter