Trading GBP vs Euro Characteristics

After almost two decades of forex history, the GBP vs Euro pair is today one of the important major currency pairs in online trading. Both the Euro as well as the Pound have gone through tough times, as the European Union members have been struggling to tackle political and financial issues for over a decade, creating relative volatility in the GBP vs Euro pair.

GBP vs Euro – The 21stCentury Developments

The performance of both currencies has been affected by the financial crises in the European South and by the Brexit developments. This is why the Bank of England and the European Central Bank are going to great lengths to protect the two currencies from future threats.

The British Pound

The Pound is a currency that is over 800 years old. It is used as means of payment in the United Kingdom and many UK overseas territories. In terms of currency tradability, GBP is classified as a major currency. The decisions of the Monetary Policy Committee can affect the performance of the Pound in the forex market and for pairs such as the GBP vs Euro. 

The British Pound has been affected by the developments regarding the Brexit and by the political uncertainty in the United Kingdom, during this transitional period of re-establishing the future relations between the United Kingdom and its EU-member neighbours in continental Europe and in Ireland.

The Euro

Contrary to the Pound’s long history, the Euro is a relatively new currency. The Euro is the official or de facto currency in 22 countries; the 19 EU members and 3 non-EU countries. Despite being a very strong currency, some of the countries that have adopted the Euro as their official currency are struggling, because their economies were not strong enough to support it. 

The Euro is one of the most traded currencies in the world, being second just behind the US Dollar. The most popular pairs containing the Euro as a variable are USD vs Euro, Euro vs JPY, GBP vs Euro and vice versa. 

For pairs showing signs of volatility, such as GBP vs Euro, trading via CFDs is a good way to capture movement and momentum. 

Source   Presented by GMOTrading
Trading the FTSE All Share Index

The London Stock Exchange (LSE) is one of the oldest and most important financial institutions in the world, and in case you have heard of the...

Short selling as a way to profit

Short selling is a method of stock trading that allows investors to profit from an investment vehicle that is going down in value and that they do not own...

The Guide to cryptocurrencies

Several years ago, say eight or nine, it would have been easy to write a short cryptocurrency list, because following Bitcoin's release in 2009, digital currencies...

Emerging markets: an intriguing niche

Emerging markets are the countries that possess some characteristics of a fully developed market but do not have enough to be...

Trading based on fundamental analysis

Fundamental analysis has been used for decades by investors wanting to identify the factors that can have an impact on asset values. Such...

Taking Advantage on A Bearish Market

Shorting a stock has been popular and widely accepted investment strategy in past years. It had become increasingly globally known when...

Top 10 Forex Brokers 2020

200+ Forex Brokers
TOP 10 Best Forex Trading Platforms
Best Forex Platforms 2020

A variety of web terminals and specialized software makes a choice of a trading platform a difficult one for a novice trader. What should be this vital decision based on? To begin with, it is necessary to highlight the main criteria that high-quality software must meet for making money on financial markets...

Top 10 Forex Platforms 2020

All Forex Platforms