EUR/GBP Trading

The pair represents the two most important economies in Europe, the United Kingdom and the European Union. They also show a lot of stability when compared to other forex currency pairs. The EUR/GBP are called cross pairs and "minor pairs,” as the forex pair doesn’t constitute USD. They have lower spreads and are thus also known as “chunnels.” This is in reference to the Channel Tunnel that connects the UK and France. The quoted currency in this is the GBP, and the base currency is the EUR.

Reading the EUR/GBP Price

The spread of EUR/GBP comes to 1.5. A forex spread is the difference between the sell rate and buy rate when exchanging currencies. The leverage comes to 400:1. The margin percentage is 0.25%. The nominal trade size of the forex pair is 1000. Trading hours in GMT are 24/5.

History of the EUR/GBP

The history of the pound is set in 775 AD. This makes it probably one of the oldest currencies in use to this date. The colonial conquests of the UK, better known as the British, made the pound dominant across the length and breadth of the world. This particular reason is what made it the primary currency of the world. The decline of the pound came into being as the Bretton Woods System collapsed. It is now, according to facts in 2019, claimed to be the fourth traded currency in the world. 
The two major events in the past that impacted GBP were the tech “bubble” burst in 2001 and Brexit in 2016.

The euro is a currency that came into existence in the 20th century but started to become prevalent in the 1990s. The euro has become the national currency of many of the countries in the European Union. The European recession has been the main cause of the volatility of the euro, which is a relatively new currency on the market. 
Greece, Spain, and Italy, for example, experienced severe backlash and debt crises that caused their currencies to depreciate during the recession. Despite this, the currency overcame it and worked hard to overtake the US dollar as the second most traded currency globally.

Major Bodies Influencing the EUR/GBP / PRICE DRIVERS

1. European Central Bank: The central bank announces interest rates, which are communicated monthly. The European Central Bank (ECB) is also a market participant. Due to the interdependence of the various currency pairs with the euro, the ECB not only affects the individual member states but also has a significant influence on them.
2. Bank of England: Like how the ECB functions, the Bank of England, or BoE, also releases statements every month. The bank is extremely active and has a great impact on its currency, GBP.
3. UK Parliament: The functioning of the GBP is also heavily dependent on how the parliament functions and responds to global financial and non-financial events.
4. UK Office of National Statistics (ONS): The ONS is entrusted with maintaining and producing data that forms the foundation of socio-economic policy decisions in the UK. For traders of EUR/GBP, keeping track of the releases from ONC is highly important as it gives a clear picture of whether GBP is going to hike or fall.

EUR/GBP Correlations

This forex pair has a positive correlation with currency pairs like USDSGD, CHFSGD, and EURMXN and a negative correlation with GBPCHF, GBPJPY, and GBPNZD.