GBP/USD is an exchange rate that specifies how many USD (US Dollar) can be converted into one GBP (Great Britain Pound), therefore the base currency is GBP and the price currency is USD. If this rate declines, it means that USD appreciates relative to GBP and if this rate increases it means that the USD depreciates against the GBP. There are many macroeconomic factors/events (fundamentals) that affect GBP/USD exchange rate, which are usually common in both countries. Some of the most notable factors/events are GDP, Inflation or Consumer Price Index (CPI), Interest Rates and other monetary policies applied by central banks. During the last two years, the exchange rate reached a low value of 1.15 in October of 2016 and a high value of 1.72 in July of 2014. Regarding the trade relationship between Great Britain and US, the latter imports 15% of Great Britain's total exports, whereas Great Britain imports 3.9% of US's total exports. The largest component of Great Britain's exports is machinery whereas US's largest export components is machinery too. Any significant shifts in the trade relationship between the two regions and changes in the values of the aforementioned components are some of the factors that could have a material impact on the pair.
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