British Pound Currency Index

The British Pound Currency Index (BXY) is a significant indicator demonstrating how strong the pound is in comparison with other major currencies. Although the United Kingdom is relatively small in size, the GBP plays a big role in the world economy. Also, USD/GBP and EUR/GBP are traditionally important pairs for Forex market participants. In order to predict the next trend for the pound, traders monitor changes of such economic indicators as the Bank of England interest rate, the GDP, the consumer price index, and energy carrier prices.