Cable

“Cable” is a market term referring to the exchange rate between the British pound (GBP) and the US dollar (USD). The name originates from the 19th century, when transatlantic exchange rate information was transmitted via underwater telegraph cables linking London and New York. Today, GBP/USD remains one of the most actively traded currency pairs in global foreign exchange markets, featuring prominently in macro trading, corporate hedging, and financial risk management. Movements in cable can influence the competitive position of UK exporters and importers, and it often reacts to economic data, interest-rate expectations, geopolitical developments, and broader market sentiment toward the UK economy. Traders monitor cable not only for directional opportunities but also for its correlation with global risk appetite, as sterling can behave differently depending on market conditions. Financial institutions, commodity firms, and energy companies may monitor GBP/USD because it affects settlement values, margin requirements, and the cost of transacting in international markets. The term remains a historical relic, but it is still commonly used by traders, brokers, and analysts across FX dealing rooms.