What is cable?
Cable is a term used for the exchange rate between the United States dollar (USD) and the British pound. (GBP). But what does cable mean? Let’s dive a little deeper into a cable definition to understand what cable means in forex trading.
The word is used in forex trading, for example “cable is trading low today” or “cable is trending high recently”. The term is limited to the British pound and US dollar, and cannot be associated with any other currency.
History of cable
International Monetary Fund data for 2020 ranks GBP as the world’s fourth largest reserve currency. The pound remains the base currency against the US dollar, Canadian dollar (CAD) and Japanese yen (JPY). The exchange is generally quoted as GBP/USD, GBP/CAD, and GBP/JPY.