Cable is a term or slang, used among traders on the forex market. It refers to the exchange rate between the U.S. dollar and the British pound sterling, or the currency pair GBPUSD. The term derives its name from the Transatlantic Cable, which is a steel cable laid under the Atlantic Ocean in 1858. It links telegraphically Britain with America, enabling messages with currency prices to be transmitted between the London and New York Exchange Markets. The first similar exchange rate was published in The Times and appeared in their issue of 10 August 1866.
Nowadays, optical fibres and satellites take the role for both local and international communications, but the nickname has remained in the foreign exchange sector.
This forex term could also be used to refer simply to the British pound sterling.
For instance, you may read some analysis or to hear a trader on the forex market to say, „The cable is up today”, or, „The cable has been trending lower lately”.
There are times when forex brokers may be referred to as cable dealers.