EUR/GBP Exchange rate
Editors’ Picks
AUD/USD continues to lose ground amid firmer US Dollar
The AUD/USD continues its losing streak, trading around 0.6580 on Thursday following the Reserve Bank of Australia's less hawkish stance, especially after last week's inflation data exceeded predictions. Nevertheless, the RBA acknowledged that recent progress in controlling inflation has stalled, maintaining its stance of keeping options open.
USD/JPY holds positive ground above 155.50 following the BoJ Summary of Opinions
The USD/JPY pair trades in positive territory for the fourth consecutive day around 155.60 during the Asian trading hours on Thursday. However, the fear of further intervention from the Bank of Japan is likely to cap the downside of the Japanese Yen for the time being.
Gold price gains ground, investors await US data, Fedspeak for fresh catalyst
Gold price trades with a positive bias on Thursday amid the absence of top-tier economic data releases at mid-week. However, multiple headwinds, such as the firmer US Dollar and the hawkish comments from the US Federal Reserve are likely to cap the upside of the precious metal in the near term.
President Biden threatens crypto with possible veto of Bitcoin custody among trusted custodians
Joe Biden could veto legislation that would allow regulated financial institutions to custody Bitcoin and crypto. Biden administration’s stance would disrupt US SEC’s work to protect crypto market investors and efforts to safeguard broader financial system.
US inflation data in the market purview
With next week's pivotal US inflation data looming, we're witnessing a stall in stock market momentum and an uptick in US Treasury yields. This shift comes amid murmurs of hawkish sentiment from Fed speak. Indeed the mind games intensify even further as investors cling to their rate cut hopes.
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Signatures
EUR/GBP
The EUR/GBP pair tells the trader how many British Pounds (the quote currency) are needed to purchase one Euro (the base currency). This is one of the most traded currency pairs. Since the European and British economies are massively intertwined (large amounts of capital are exchanged on a daily basis between the United Kingdom and all European countries), the pair tends to be relatively stable but events and news related to the exit of Great Britain of the European Union will probably affect the pair and create choppier movements than usual. A public vote (known as a referendum) was held in June 2016, when 17.4 million people opted for Brexit. This gave the Leave side 52%, compared with 48% for Remain. The UK officially left the EU on 31st of January 2020.
HISTORIC HIGHS AND LOWS FOR EUR/GBP
- All-time records: Max: 0.98049 on 29/12/2008 - Min: 0.56870 on 01/05/2000
- Last 5 years:: Max: 0.9324 on 12/08/2019 - Min: 0.69307 on 13/07/2015
* Data as of February 2020
ASSETS THAT INFLUENCE EUR/GBP THE MOST
- Currencies: USD and YEN.
- Commodities: Oil and Gold.
- Bonds: Gilt (debt securities issued by the Bank of England) and Bund (the German word for "bond", a debt security issued by Germany's federal government).
- Indices: FTSE 100 (share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization), ESTX50 (ESTX50 (Euro Stoxx 50, a stock index of Eurozone stocks designed by STOXX, an index provider owned by Deutsche Börse Group) and DAX (Deutscher Aktienindex, German stock index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange).
ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE EUR/GBP
The organizations and people that affect the most the moves of the EUR/GBP pair are:
- Bank of England (BoE), known to be one of the most effective central banks in the world. It acts as the government's bank and the lender of last resort. It issues currency and oversees monetary policy (including interest rates). Andrew Bailey is the new Governor of the Bank of England since 16 March 2020. Her Majesty the Queen has approved the appointment. He is widely and deeply respected for his leadership managing the financial crisis, developing the new regulatory frameworks, and supporting financial innovation to better serve UK households and businesses.
- European Central Bank (ECB) whose main objective is to maintain price stability for the Euro. Headed by Christine Lagarde, the ECB sets and implements the monetary policy for the Eurozone (including interest rates), conducts foreign exchange operations and takes care of the foreign reserves of the European System of Central Banks.
- London’s City Financial District: This is still the largest and most developed financial market in the world and as a result banking and finance have become strong contributors to the national economic growth.
- The Prime Minister of Great Britain Rishi Sunak, serving as Prime Minister of the United Kingdom and Leader of the Conservative Party since October 2022.
- Olaf Scholz, at the head of Germany, the strongest economy of the European Union, is also an important figure for any Euro-related currency cross.
In terms of economic data, as for most currencies, the EUR/GBP traders have to keep an eye on:
- GDP (Gross Domestic Product), the total market value of all final goods and services produced in a country. It is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing.
- Inflation measured by key indicators as the CPI (Consumer Price Index) and the PPI (Production Price Index), which reflect changes in purchasing trends.