EURGBP

The EURGBP currency pair consists of two monetary units, namely the euro and the British pound.

with EURGBP, the main of which is that it has calm trends without any sharp jumps.

Some site owners recommend it for beginners, claiming that it is easily predictable and does not have high volatility.

All these are myths and misconceptions, and I will try to explain to you why.

Initially, let's look at both currencies separately so that we can understand what actually affects the price movement.

We'll start with the British pound. GBP is the third currency in the world in terms of distribution and turnover. The popularity of GBP is second only to the Dollar and the Euro, but this was not always the case. Previously, before the Second World War, the Briton was the first world currency, which was used by many countries. The pound was so popular and widespread that some countries locally used it as a second currency after the state currency.

This is explained by the fact that Great Britain was a colonialist country and it was the pound that was used in many of its colonies. However, after the Second World War, the pound lost its position to the strengthened US economy and its dollar. Today the UK has one of the strongest economies in the world. Don't forget that the UK is a member of the European Union, so it has very strong trade relations between Western Europe and the US.

Therefore, the pound exchange rate is significantly affected by trade turnover with the United States and Europe and energy prices. Particularly strong news that really moves the pound is the Bank of England interest rate data. One should not discount the internal key indicators for the industrial sector, jobs, GDP, as well as statements by the country’s leadership.

If it is difficult to predict the exchange rate of the pound, but based on economic indicators it is still possible, then with the European currency things are a little more complicated. The euro is the currency of the eurozone countries. As you understand, the eurozone includes a large number of countries that, to one degree or another, influence the euro exchange rate. For example, the crisis in Athens hit the global prestige of the euro very hard, weakening its exchange rate significantly.

It is very difficult to forecast the euro in the long term at this stage, since completely contradictory data for different countries can give completely unpredictable results. However, when trading currency pairs with the euro, I recommend paying special attention to the indicators of the strongest eurozone countries, such as Germany and France. Usually, good news on the performance of the German economy can more than move the euro up against the backdrop of poor performance in other eurozone countries.

If we talk about which indicator strongly moves the euro, then I can safely say that these are interest rates of the European Central Bank, unemployment rates (by country) as well as consumer indices. It is also worth noting that in the last year, due to the tense situation in trade relations with Russia, the European currency has become politicized.

Therefore, I always recommend monitoring statements by heads of state, as well as information on the sanctions policy that is being pursued towards Russia. You must understand that every time Europe imposes sanctions, it also hits its economy.

The EURGBP currency pair is very active during the European trading session and very passive during the Asian one. Fluctuations in a currency pair can exceed 150 points per trading session. Do not forget that the dollar also influences the economies of both countries, since both countries have strong ties with the United States. Therefore, it is worth taking into account the fundamental indicators of the United States and their impact on the euro and pound.

In conclusion, I hope that I have debunked the myth about the easy predictability of the movement of the EURGBP currency pair, since the euro at this stage is one of the unpredictable currencies, and therefore the currency pair too. Thanks for your attention, good luck!