Why is GBP/USD called 'Cable'?

The name dates to the 19th century, when the GBP/USD exchange rate was transmitted across the Atlantic via an undersea telegraph cable.

What makes the pound volatile?

Sensitivity to UK services inflation, BoE vote splits, and fiscal/political news adds volatility on top of the BoE–Fed policy gap.

What is the main driver of GBP/USD?

The expected divergence between Bank of England and Federal Reserve policy, alongside broad dollar moves.

GBP/USD

“Cable”

British Pound / US Dollar

GBP/USD ('Cable') reflects the policy gap between the Bank of England and the Federal Reserve, with extra sensitivity to UK political and fiscal news.

GBP/USD, known as 'Cable' after the transatlantic telegraph cable once used to transmit its quote, is one of the oldest and most actively traded currency pairs. It expresses the value of the British pound against the US dollar.

Cable is driven by the relative monetary-policy paths of the Bank of England and the Federal Reserve, but it carries an extra layer of sensitivity to UK-specific political, fiscal, and inflation news. Sterling can move sharply on UK budget events, services-inflation surprises, and shifts in the MPC's vote split.

What moves GBP/USD

BoE vs Fed policy divergence
The expected gap between Bank Rate and the federal funds rate sets the carry and trend.
UK services inflation & wages
The persistence indicators the BoE watches most, and a frequent source of sterling surprises.
UK fiscal & political news
Budgets, gilt-market stress, and political events can move the pound independently of the rate path.
Broad dollar moves
Cable often follows the wider dollar trend set by US data and risk sentiment.

Trading sessions

GBP/USD is most active during the London session and the London–New York overlap, when UK and US data and order flow concentrate.

Volatility

Cable is more volatile than EUR/USD, with sharper reactions to UK inflation, BoE decisions, and fiscal events.

Central banks behind this pair

GBP/USD FAQ

Why is GBP/USD called 'Cable'?: The name dates to the 19th century, when the GBP/USD exchange rate was transmitted across the Atlantic via an undersea telegraph cable.
What makes the pound volatile?: Sensitivity to UK services inflation, BoE vote splits, and fiscal/political news adds volatility on top of the BoE–Fed policy gap.
What is the main driver of GBP/USD?: The expected divergence between Bank of England and Federal Reserve policy, alongside broad dollar moves.

Related currency pairs

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