Live and Historical EUR/GBP Rates
This chart represents the value of the Euro against the British Pound (GBP) – the number of British pounds required to buy one Euro. This pair is referred to as the Chunnel. Both the Euro and the GBP are considered major currencies, but Chunnel is not. The two currencies have a close coordination because of the strong economic ties between the two economies.
The Euro has become the currency for 21 European countries since its introduction in 1999. Second only to the US dollar, the Euro is a very popular currency for trade. The Euro has the highest volume of economic value of any world currency in circulation. The Euro has also become the second most traded currency and the second largest reserve currency. The European Central Bank (ECB) in Frankfurt controls the Euro, but does so at a distance without undue influence to manipulate its value. The Euro is most heavily influenced by exports as well as services, agriculture, and tourism.
The British Pound
The British Pound (GBP) is known for being the oldest currency still in modern use and for its enduring value in the global market. It is the third largest of reserve currencies and is number four of the most traded currencies. In 1971, it was allowed to float. Although Great Britain joined the EU, it refuses to surrender the pound for the Euro. Several years of rapid deflation occurred after 2008: an abnormal phenomena for a wealthy nation. The UK mainly exports manufactured goods and other highly processed products. The UK trades mainly with the US, Germany, the Netherlands, France, and Ireland.
The GBP continues to provide competition for the Euro-almost a family feud since the UK has joined the EU. In general, the pair stays closely aligned because of their close economic ties and dependence. In the years following 2008, both were in freefall, though the GBP fell faster. If the GBP rebounds and the Euro continues to fall, Chunnel could become a very interesting pair for currency trade. This European pair has a close interest rate spread so it is not very popular for carry trades.
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