Gbp usd exchange rate bloomberg

THE BRITISH POUND STERLING (GBP)

The British Pound Sterling (GBP) is the official currency of the United Kingdom, the British Overseas Territories of South Georgia, the South Sandwich Islandsand the British Antarctic Territory as well as other United Kingdom crown dependencies. Some African country like Zimbabwealso uses the poundsand pegged to the Falklands Pound, Gibraltar pound, Saint Helenian pound, Jersey Pound, Manx Pounds, Scotland notes and the Northern Ireland notes. The currency has one of the highest trading volumes in the world, trailing only the United State Dollar, Euro and the Yen on a daily basis, the British pounds was nicknamed “quid” and popularly known as the British pound sterling and has served as currency in many colonies previously such as Australia, New Zealand and Canada.During the Great Recession, the value of the British pound fell sharply. In 2007, the GBP/USD traded to an all-time high above 2.10, before falling below 1.40, losing over a third of its value as investors flocked to the U.S. dollar - a so-called safe haven currency. In the five or so years preceding the Great Recession, the British pound recovered to trade around 1.6 against the U.S. dollar. 

The GBP/USD had another sharp decline in June 2016, when Britain voted to leave the European Union. The GBP/USD pair fell 10 percent in one trading session and lost nearly 20 percent in the month proceeding the Brexit vote. The vote to leave the EU was seen as negative for the British economy as it would be forced to renegotiate trade deals and this uncertainty led to investors pulling money out of the U.K. at a record pace. 

THE UNITED STATES DOLLAR (USD)

The United States Dollars is usually recognized with US$, sign $ and the code; USD, it is mostly regarded as the American dollar or the U.S dollar. it is the official currency of the United States and its territories as it is the most used in the international transaction, it is the world’s primary reserve currency. Many countries take it has their official currency while some take it has a defacto currency. Aside the United States, it is also used as the sole currencies in other British Territories. The United States central bank is also known as the Federal Reserve Bank or The Fed.

The United States of America has a mixed capitalist economy, which is fueled by abundant natural resources, a well-developed infrastructure, and high productivity. According to the International Monetary Fund, the U.S. GDP of $15 trillion constitutes 23% of global GDP to exchange rates and market more than 20% of global GDP in purchasing power parity.

Although larger than any other nation, its GDP is 5% smaller than the GDP of the European Union in purchasing power parity in 2008. The country ranks ninth in the world in nominal GDP per capita and sixth in GDP per capita in PPP. The United States Dollar is the main global reserve currency.

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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