EURGBP: Live Euro-British Pound Exchange Rate, Chart, Forecast
The EUR to GBP currency is of particular interest for market participants from the UK and the Eurozone, where the two represent their national currency. The usage of both currencies in the international markets, especially the GBP, which comes from a financial centre, creates a sufficient level of liquidity. The pair is alluring for traders because it has relatively stable volatility measured in pips and lower trading spread which reduces the trading costs. Let’s take a closer look at the EURGBP pair in this article.
What is EURGBP? Overview
EURGBP is the symbol for the Euro to British Pounds forex exchange rate. EUR to GBP is nicknamed the “Chunnel”, based on the Channel tunnel between the United Kingdom and France. The pair represents the currencies of two major economies in Europe: the UK and the Eurozone. EUR/GBP is listed among the top ten traded currency pairs based on the trading volume.
The EUR GBP pair falls in the cross currencies or “minors” group, which are forex pairs where the US dollar is not included. In this forex pair, EUR is the base currency, while GBP is the quote currency. Consequently, the exchange rate shows how much pounds sterling need to be exchanged for 1 euro. The EURGBP converter calculates the number of pounds received after selling a certain amount of euros or the cost to buy a certain amount of euro expressed in pounds.
EURGBP live chart shows the changes in the respective exchange rate overtime. The chart tracks the effects of news and changes in relevant factors on the EURGBP exchange rate, which is crucial for fundamental and technical analysis.
How to Read the EURGBP Chart
The EURGBP rate displays the strength of one currency against the other currency. Thus, when the exchange rate rises, the base currency (EUR) becomes stronger, but when the exchange rate declines, it indicates a weaker base currency or stronger quote (GBP) currency. Appreciation in the rate means that more GBP is needed to buy one euro, while a decline in forex rates will result in a cheaper euro because fewer pounds sterling will be needed to buy one euro.
Typically, brokers will provide two rates for each forex pair. Brokers will quote the bid and ask price for EURGBP, representing the sell and buy price from traders’ perspective. The difference between the two rates is called a spread or bid-ask spread, and it is expressed as pips which symbolises a fraction of a cent.
For instance, if traders buy one unit of EUR for 0.84006 GBP or sell one euro for 0.8339 GBP, the broker collects the difference between the two. In simple terms, traders will always buy the forex pair at the higher rate while selling it at the lower quoted rate.
EURGBP Historical Data
The increased trading and demand and supply, for this currency pair, from traders, financial institutions, and governments mean that there is rather interesting price action.
EURGBP Exchange Rate History
The EUR/GBP (EURGBP=X) exchange rate has displays an overall upward movement since 1980. However, the upward trend was not smooth since there were some major price swings and significant reversals. The pair depreciated to an All-Time-Low rate of 0.51990 in January 1981, whereas in December 2008, during the financial crisis, it reached an All-Time-High price of 0.95480.
A significant EURGBP crash occurred from November 1995 to April 2000 with a 30 per cent depreciation of the euro against the GBP. In contrast, the pair had two major uninterrupted bull movements when the euro value increased against the pounds. From February 2007 to December 2008, the rate experienced a rise of more than 40%, and in the period December 2015 to November 2016, the exchange rate increased more than 20%. The exchange rate increased in 2016 due to weakening GBP caused by Brexit related issues and voting.
EURGBP Exchange Rate Today
Today the EURGBP rate goes through regular price swings, which is evident across different time frames. The EURGBP chart shows that this pair characteristically fluctuates around 1% within a trading session, offering a certain degree of stability for traders, which is the reason behind the popularity of scalping techniques.
Its weekly movement is relatively stable since the EURGBP rate usually fluctuates up to 2%. However, this should not be taken for granted because in the past major political or economic events caused severe movements in the EURGBP exchange rate.
What Influences EURGBP Exchange Rate?
The two economies represented with the respective currencies have a high degree of interdependence. Efforts were made for the uninterrupted flow of production factors to continue in post-Brexit economies to support economic growth. Hence, the primary factors that affect the euro to pound rate are:
- European Central Bank monetary policy decisions with its main objective to sustain price stability of the euro. Traders need to follow the ECB monthly releases, movements in the bond market and the application of Quantitative Easing instruments and other instruments used by the ECB.
- The Bank of England is responsible for the creation and implementation of the monetary policy in the UK. Therefore, an announcement made by the governor will affect the exchange rate of the pound sterling.
- Interest rate policies of the UK and the EU might cause fluctuations in the EURGBP rate;
- When trading EUR to GBP, pay close attention to the UK parliament. The reason is that decisions, discussions or political announcements made by the Parliament caused significant changes in the EUR GBP rate in the past.
- The euros to pounds exchange rate is influenced by changes in economic indicators and economic data like labour market statistics, unemployment rate, wage growth, GDP, trade balances, and consumer confidence. Consequently, traders should track the releases made by the UK Office of National Statistics.
EUR GBP Forecast and Predictions
The expectations about future movements in the EURGBP rate are in general bullish. Experts and analysts using different analytical methodologies and systems anticipate that the exchange rate will continue to increase in the next couple of years. The predicted EUR to GBP rates are displayed in the table.
|Year||Forecasted EUR to GBP rate|
Although the EURGBP forecast is primarily bullish, traders should be aware that these predictions may be modified based on changes in the relevant fundamental factors. Monetary actions and releases by the Bank of England and the ECB will dictate the EUR/GBP rate movement. Also, the economic developments in a post-covid-19 period will have major implications for the rate.
Why Trade EURGBP Today?
Multiple arguments support the trading of EURGBP pair, some of the most important reasons are:
- The EURGBP is ranked among the more stable currency pairs, which indicates that movements in its exchange rate can be more easily anticipated and that major fluctuations are rare;
- The popularity and the trading volume of the EUR to GBP ensures a high degree of liquidity, lower volatility and tighter spreads.
- Tighter spreads reduce the cost of trading and make the pair suitable for many trading strategies;
- The currencies are under significant influence from financial news that could cause a trendy movement. Most of the news is released by institutions and governments on a predefined schedule.
- EURGBP pair is considered to be highly immune to significant US news and announcements.
- Due to its price action properties, EURGBP can blend with different types of trading strategies
Where Can I Invest in the EUR GBP Pair?
Traders should look for a broker that gives them access to an easy-to-understand platform with multiple trading tools and favourable trading terms. ZFX trading platform allows traders to trade when it is most suitable for them with zero commissions and without deposit or withdrawal fees.
Aside from the EURGBP CFDs available on the ZFX MT4 platform, traders have the option to diversify their trading activities and open and close trades with CFDs related to stocks, commodities and indices. Moreover, ZFX offers a vast number of educational materials and trading tools. Traders have access to the economic calendar and major releases and announcements, market news and outlook, technical indicators, etc.
How to Trade EURGBP Now
To trade EURGBP with the CFDs offered by ZFX, traders need to go through a few simple steps to open and fund their accounts.
1 – Open a ZFX Account
Traders need to register an account with ZFX by selecting the “Open an account” button in the top right corner or through choices offered in the “Accounts” section. ZFX offers a demo account for traders to test their trading signals or practice their trading skills.
Irrespective of the selected option, you will then find a form that asks for certain information. Provide the requested information and press the “Next” button, and your account is created. Follow the instructions sent to your email.
2 – Verify your Account
Once you register, ZFX will ask you to verify the account by providing valid documents to confirm your identity and bank account. Hence, you can upload a scanned copy of your national ID, driver’s license or passport. ZFX will ask for a copy of your bank statement or a page from the bank book to verify that your bank account is functional.
3 – Make your First Deposit
Traders can fund their accounts via Bank Transfer or Credit Cards, and ZFX doesn’t charge any deposit or withdrawal fees. Select the “myZFX” to enter your account and navigate to the “Deposit section, where further instructions are given based on your funding method.
4 – Start trading EURGBP
ZFX clients will trade EURGBP pairs or other forex pairs and instruments through an innovative and user-friendly MT4 trading platform. Firstly, you need to download the preferred version of the ZFX MT4 platform and log in to your account.
To trade the EURGBP pair, go to the list of trading instruments in the upper right section and scroll to find the pair. After clicking on the pair, a graph will appear to the right with the EURGBP sell and buy prices. Enter the volume, order type, take-profit or stop-loss orders, and select the planned position to trade the pair.
Tips for EUR GBP Beginner Traders
Traders may want to take a look at the following tips when trading the EUR GBP pair:
- Understand the concept behind a currency pair what does the movement in the respective exchange rate show. Understand the base currency and the quote currency;
- If you don’t want to start trading immediately, use the demo account available on ZFX MT4 to practice your trading skills;
- Even though many factors influence the euro/pound sterling exchange rate, traders assign high importance to the central bank interest rates.
- Follow the EURGBP news, events and announcements related to economic data to detect potential trading opportunities;
- Chose the most suitable hours that fit your trading strategy. Note that the EURGBP trading sessions are Sunday 17:05 – Friday 16:55 (New York time). Noteworthy mentioning is that both markets open at a similar time because the countries fall in close time zones.
- The EURGBP correlation with other currency pairs is important because changes in other pairs may indicate upcoming changes in the exchange rate, or they could be used for hedging.
- The pair can fit into different trading strategies. For instance, an individual trader might choose to be a EURGBP scalper because of the tight spreads.
Bottom Line: Is EURGBP a Good Investment Now?
Considering the factors that affect the EURGBP rate along with how the rate moved in the past, we could say that the pair represents a good investment today. The two currencies come from highly interlinked economies and closed trading partners. Also, this pair is one of the top traded pairs. This ensures a sufficient level of liquidity while it also offers higher stability and lower volatility.
An argument in favour of trading the EURGBP is that its price action might give opportunities for traders to open long positions or to short the forex pair. Consequently, they could potentially profit from the appreciation and depreciation of the EUR to GBP forex rate.