GBP Exchange Rate
Ahh, Britain--The country that brought the world tea drinking1 as a competitive sport and the most beloved culinary creation of all time, haggis.
What influences the GBP/USD exchange rate?
The GBP/USD currency pair is known as trading the ‘Cable’ and is the 3rd most popular currency pair after USD/EUR and USD/JPY.2 Fluctuations in the GBP/USD exchange rate are often based around perceptions of relative economic strength between the two countries, and fiscal policy announcements by the Federal Reserve and Bank of England may play an influential role as well.
The United Kingdom is one of the largest markets for U.S. goods exports and one of the largest suppliers of U.S. imports. The United States and the United Kingdom share the world's largest bilateral foreign direct investment partnerships.
---U.S. Department of State
In 1946, Winston Churchill referred to the U.S./U.K. alliance as a ‘special relationship’--a modest phrase for the often unparalleled and unprecedented cooperation between two major powers. Along with Australia, New Zealand and Canada, the U.S. and U.K. are primary participants in the intelligence sharing alliance known as the Five Eyes.
Higher education is a popular export for both countries. For the U.S. it’s a $21 billion contributor to the economy while for the U.K. it hit £18 billion in 2012.3
The two countries share a love of fast food. Americans spend about $37 billion per year on pizza. That’s roughly ⅓ of the global market and amounts to a consumption rate of about 100 acres per day. Comparatively, the U.K. spends just under £3 billion on pizza annually.4
Whether you’re paying for an overseas education, starting a global pizza empire or sending money back home to friends and family, OFX can help you save on your international money transfers. If you need to make a payment to the U.K., use OFX so you don’t get stung by high bank margins and fees. Register today to get access to our low rates and personalized service.
Currency Name: Pound Sterling. Also known as: U.K. pound, or quid.
Currency Code: GBP
Currency Symbol: £
Central Bank: Bank of England
Countries Used In: The United Kingdom and British territories including: Isle of Man, Gibraltar, Falkland Islands. Guernsey and Jersey.
Major Unit: One pound
Minor Unit: One penny or pence
Note Denominations: £1 (rare), 5, 10, 20, 50, 100 (rare)
Coin Denominations: 1p, 2p, 5p, 10p, 20p, 50p, £1, £2