eurgbp

EURGBP is the foreign exchange rate that measures how many British pounds sterling are needed to buy one euro. It is quoted as EUR/GBP, indicating the value of one euro in pounds. The inverse, GBP/EUR, shows how many euros one pound can buy. As a cross rate, EUR/GBP is typically derived from the euro-dollar and pound-dollar pairs, roughly calculated as EURGBP ≈ EURUSD ÷ GBPUSD. The pair is actively traded in the interbank market and by retail brokers, with spreads that vary by liquidity and market conditions.

Market activity for EUR/GBP is strongest during European and London hours, and it can be influenced by developments in both the euro area and the United Kingdom. Key drivers include monetary policy and economic data from the European Central Bank and the Bank of England, such as inflation, growth, employment, and balance of payments. Political developments, Brexit-related news, and risk sentiment can also impact the pair, given its exposure to both the euro and the British economy.

Participants in EUR/GBP range from banks and hedge funds to corporations and individual traders, who use the pair for hedging cross-border trade or for speculative purposes. Liquidity tends to be robust compared with some other cross rates but typically lower than that of the major currency pairs that include the US dollar. As with other cross rates, EUR/GBP can exhibit higher volatility around policy announcements and major data releases.