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GBP, known as British Pound Sterling is the government released legally circulating currency of the United Kingdom. It happens to be the oldest active currencies of the world. Earlier the currency was made in gold and silver but with the modernization of economy new paper bank notes and coins replaced the old metal. The currency is backed by gold reserves.
In common language by people, it is referred to as just Pound or even Pound Sterling to avoid any confusion. It is considered a major currency; in the same category of USD, Yen, Euro in terms of strength and position that they hold in the world market. GBP holds the highest value where all major currencies are concerned. GBP is traded with all the major Forex pairs by currency traders. One GBP or British Pound Sterling is equal to a hundred pence.
Factors that affect the exchange rate of GBP may include the bank of England's intervention; interest rates; export imports, GDP; Consumer Price Index etc. When pound becomes stronger companies that will benefit from its strength will be the ones that import or buy raw material from other counties; whereas when the Pound Sterling goes weak those companies will benefit to whom the UK supplies materials. Companies that get their revenue from exports will stand to gain as the pound weakens.
For currency traders who trade GBP as one of their currencies the most active trading hours are from the time the London market opens which is from 3:00AM ET / 8:00 GMT; UK Economic news release happening between 4:30AM ET / 9:30 GMT; and a time when U.S. releases any kind of breaking economic news which generally happens between 8:30AM ET/ 13:30 GMT.
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