Overview:

Historically a market that is difficult to price and value, again a popular currency pair to trade due to the significance of the European Union (EU) and the United Kingdom (UK) and the trade ties that exist between these two economies. This currency pair tells traders how many UK Pounds are needed to buy one Euro. In latter times, the uncertainty surrounding Brexit has made the volatility in this currency pair attractive to Traders - announcements from the European Central Bank (ECB) and the Bank of England (BoE) will also affect this currency pair heavily.

Key Facts:

EUR

• The Central Bank of Europe is the European Central Bank (ECB).
• Currently 19 member states of the European Union (EU) use the Euro currency, meaning that exchange rate risk is reduced and contributes to economic stability for all countries within the EU.
• The Euro is the second-largest currency that is traded worldwide and is a major global reserve currency.
• The Euro replaced the European Currency Unit (ECU) in 1999 and strict rules were issued to member state countries joining the currency union.

GBP

• The Central Bank of UK is Bank of England (BoE).
• Pound Sterling is one of the oldest modern currencies in the world. During the American war of independence and Napoleonic wars Bank of England notes were used as the currency of choice and its value floated relative to gold.
• The UK economy is heavily dependent on the financial services and key data for GBP are Services PMI, CPI and employment statistics.
• GBP also referred to as just sterling or the pound is fourth in terms of global reserves held worldwide.