EUR/GBP is a popular currency pair in the forex market, which compares the Euro and British Pound. The exchange rate between these two currencies is affected by a variety of factors, including economic and political developments in the European Union and the United Kingdom, as well as global market trends.
One interesting fact about EUR/GBP is that it is one of the most traded currency pairs worldwide, due to the significant economies of the European Union and the United Kingdom. This pair has come into focus more and more in recent years as the Brexit vote and process heavily impacted both currencies involved. The volatility of this pair is often linked to political and economic news, such as Brexit negotiations, interest rate decisions by the European Central Bank (ECB), and economic data releases.
Investing in EUR/GBP requires knowledge of trading hours, which can affect the currency pair's volatility. The EUR/GBP is generally busy between 06:00 and 16:00 (GMT). However, theoretically, forex pairs can be traded 24/5.
Understanding the history of the currencies in the pair can also help with trading decisions. To fully understand this pair, and why many choose to trade EUR/GBP over other currencies, it's important to explore the origins of these two currencies and how they came together.
As with other forex indices, investors can trade the EUR/GBP using CFDs, which allow them to take advantage of leverage to increase their potential returns. However, it is important to note that trading with leverage can also increase the risk of losses, so investors should always exercise caution and carefully manage their positions.
XTB offers CFD trading for the EUR/GBP forex pair with near real-time movement tracking via our xStation trading platform.
Investors should also be aware of market sentiment when investing in EUR/GBP. For instance, according to recent data, traders are now net-short EUR/GBP for the first time since Apr 03, 2023. Another factor to consider is technical analysis, which involves studying charts to identify trends and patterns in the market.