EUR GBP Investing
Minimum spread- 1
Typical spread- 2.7
Minimum nominal trade size- 1000
Overnight interest (annual) sell- -0.50%
Overnight interest (annual) buy- -1.80%
Trading hours (GMT) – 24*5
EUR/GBP is the ticker that represents the strength of the Euro against the pound. The EUR/GBP is one of the minor pair in the Forex market. Minor currencies are those pairs which don’t include the US dollar. The symbol of the Euro currency is €, the letter code on the Forex market is EUR, the symbol of the British pound sterling is £, the ticker code is GBP.
In the EUR/GBP currency pair EUR represents the Euro, which is the base currency, and GBP represents the pound sterling, which represents the quote currency. At any given point of time, EUR/GBP represents the number of pounds it would take to exchange for one euro.
The pound is the national currency of Great Britain and has played a significant role in the currency market while the Euro was created to facilitate the international trade of European trading partners. The pair is popularly known as Odious. Great Britain is a part of the European Union, but after the referendum on secession from EU (Brexit) the British decided to be regarded as separate from EU which resulted in a catastrophic drop in the value of the pound in relation to all world currencies.
Highs and Lows
During the past five years the EUR/GBP pair made a record-time high of 0.9431 in October 2016 and a record low of 0.6935 in July 2015.
In the current financial year, the Odious made a record high of 0.9327 in august and a record low of 0.8277 in December. The total net change stands at -7.21% for the current financial year.
Understanding the EUR/GBP price
The rule to read the price quote is similar to any other pair. In EUR/GBP, the Euro represents the base currency in relation to the pound. Thus when the EUR/GBP rally that means the Euro is gaining strength over the pound and the Euro loses its strength when EUR/GBP falls. The price quote of EUR/GBP means the amount of pound, which is equivalent to one euro. For example, when EUR/GBP quotes 0.8152 prices, it means one euro is equivalent to 0.8152 pounds.
Key Factors to keep in mind while trading EUR/GBP
Monetary Policy Impact
The European Central Bank (ECB) is the issuer and regulator of the Euro. ECB and the Monetary Policy Committee can have a direct influence on the exchange rate. The body itself is formed on the basis of the participation of all representatives from all countries of the European Union. In addition to issuing activities, supervision, and regulation, the ECB Statutes spell out obligations to maintain the financial stability of the Eurozone.
Monetary policy is one of the most important factors which can influence the EUR/GBP price movement. In the UK, the Bank of England controls the rate and updates are released every month. The change in the interest rate can cause a considerable movement in the EUR/GBP price.
Any political unrest can cause a significant effect on the EUR/GBU pair. For example, news related to the Brexit deal, the election in a nation, which constitutes a bigger economy in the European Union.
The economic calendar offers a significant amount of information. Some of the most important data are:
- CPI-consumer Price Index
- GDP– gross domestic product
- PMI– purchasing managers index
- Trade balance
Why trade in EUR/GBP with CAPITAL STREET
- BROAD RANGE OF MARKETS- Access to the popular Forex markets, including major, minor and exotic pairs
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- Trade using Margin- Get greater exposure to the marketplace with a small deposit and spread your capital using margin.
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- Safety of funds