The pound and dollar are one of the oldest and most traded currency pairs. It is also known as the cable after the days when trades were initially transmitted via the trans-Atlantic cable. In those early days sterling held prime status as the world’s reserve currency. Today the roles are reversed with the Dollar being the world’s most widely held currency and GBP rolling in behind the Euro.
Movements between the two are unusually sensitive to economic and political movements. For example, when the UK voted to leave the European Union, USD surged in value against it. Both sides release regular policy announcements such as changes to interest rates which can also have a significant impact on the fortunes of the pair.