EUR/GBP Live and Historical Rates
The EUR/GBP pair – also known as the Chunnel – is yet another pair made up of two major currencies, which does not itself qualify as a major. The Chunnel is obviously massively influenced by the close correlation of the EU and British economies, and that will likely remain the case after Brexit too. The chart above shows how many GBPs one needs to purchase a EUR.
Used by 21 countries and some 324 million people as official currency, the EUR is the common currency of the world’s biggest economy, the Eurozone. While 7 EU members are bound by treaty to join in the future, in the wake of the 2008 global financial crisis, the appetite on the part of these countries to join the Euro club has quite noticeably subsided. Still, the Euro is used de-facto by at least as many people as the population of the Eurozone, and the currency is the second most traded, as well as the second biggest reserve currency of the world.
The British Pound is a high-profile currency as well. In addition to being the world’s oldest currency still in use today, it is the 4th most traded one and the third largest reserve currency behind the USD and the EUR. Viewed by many as a symbol and guarantor of British sovereignty, the GBP was only allowed to float in 1971. During its EU membership, Britain refused to surrender its currency and join the Euro and now with the Brexit procedure launched, the future of the GBP seems assured.
Due to the close economic interdependence between Britain and the EU (a status-quo likely to survive the impending Brexit too), the GBP and the EUR are quite closely aligned. Carry trading isn’t a profitable option on this pair, due to the small interest rate spread between the currencies.
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