Forex (Foreign Exchange) trading involves buying and selling different currencies in order to make a profit. The value of one currency is determined by its exchange rate with another currency. Forex trading involves trading currency pairs, which means that currencies are traded in pairs. A currency pair represents the exchange rate between two currencies, and it is quoted in terms of the base currency and the quote currency. In this article, we will discuss which pair is cable on forex.
Cable is a nickname for the GBP/USD currency pair. It is one of the most popular currency pairs that is traded in the forex market. The GBP/USD currency pair represents the exchange rate between the British pound and the US dollar. The GBP is the base currency, and the USD is the quote currency. This means that the value of one GBP is quoted in terms of how many USD it is worth.
The nickname “cable” refers to the transatlantic cable that was laid under the ocean in the 1800s to transmit exchange rates between London and New York. This cable was used to transmit exchange rates between the two cities, and it was the fastest way to transmit information at the time. Today, the term cable is still used to refer to the GBP/USD currency pair, as it is one of the most heavily traded currency pairs in the world.
The GBP/USD currency pair is influenced by a number of factors, including economic indicators, political events, and central bank policies. Economic indicators, such as GDP, inflation, and employment data, can have a significant impact on the exchange rate between the two currencies. Political events, such as elections, referendums, and trade negotiations, can also affect the value of the currencies.
Central bank policies can also influence the value of the GBP/USD currency pair. The Bank of England and the Federal Reserve both have the ability to set interest rates, which can affect the value of the currencies. If the Bank of England raises interest rates, for example, it can make the GBP more attractive to investors, which can increase its value relative to the USD.
The GBP/USD currency pair is also influenced by market sentiment and technical analysis. Market sentiment refers to the overall mood of traders and investors, and it can be influenced by news events, rumors, and market trends. Technical analysis involves using charts and indicators to identify patterns and trends in the price of the currency pair.
In conclusion, the GBP/USD currency pair is known as cable in the forex market. It represents the exchange rate between the British pound and the US dollar, with the GBP being the base currency and the USD being the quote currency. The exchange rate between the two currencies is influenced by a number of factors, including economic indicators, political events, central bank policies, market sentiment, and technical analysis. Understanding these factors can help traders make informed decisions about when to buy or sell the GBP/USD currency pair.
