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Best GBP-USD Forex Brokers
Forex Trading: The GBP/USD Currency Pair
The GBP/USD is known as the “Pound dollar” by forex traders and is one of the majors. Both the US dollar (USD) and the British Pound (GBP) are popular currencies; having average daily over-the-counter (OTC) turnovers of US$4,438 billion
and US$649 billion respectively for 2016. Of the two currencies, the USD is the more widely traded, accounting for as much as 88% of the OTC forex market (2016). It is second in trading volume among the major pairs to the EUR/USD.
The GBP accounted for 13% of this market during the same period. Considerable levels of trading between these two economies gives rise to the need to hedge against foreign exchange risks. The liquidity of the USD, and to a lesser extent, the GBP, also makes the pair an attractive trading pair for retail forex traders. The volatility of the currency pair over the last 10 weeks was approximately 1.01%, with the pair moving by 125.84 pips during the period.
The GBP/USD closed trading at 1.2291 on Friday, March 3rd, 2017 (Bloomberg), gaining 0.20% over the previous close of 1.2267.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Best Forex Brokers for Trading the GBP/USD
Here are the best forex brokers for trading the GBP/USD.
- 9.9/10 Overall
- 9.7/10 Overall
- 9.9/10 Overall
- 9.6/10 Overall
- 9.3/10 Overall
- 9.4/10 Overall
- 9.3/10 Overall
- 9.1/10 Overall
- 8.8/10 Overall
Fundamental Influences on the GBP/USD Currency Pair
As with most currency pairs, the economies of both the United States and Great Britain, have a significant, influence on the rate of exchange. With the economy of the United States expected to undergo major changes in 2017 and beyond with the new Trump administration, the pair is likewise expected to adjust in response to the prevailing economic conditions.
The interest rate policies of the US Federal government are also expected to impact the currency pair. Similarly, Brexit is still expected to affect the exchange rate between the pound and the dollar in 2017.
Major political events are known to impact currency rates of exchange. For example, during the week following the inauguration of President Trump in January 2017, the GBP/USD rate fell sharply following great uncertainty about the US economy. As the pound strengthened, the dollar dropped sharply.
More clarity on the fundamental impacts on the currency pair will be gained as the year progresses.
BrokerNotes.co 2023 Overall Rankings
To recap, here are our top forex brokers for 2023, sorted by Overall ranking.
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Forex Risk Disclaimer
There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more about foreign exchange risk.
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