EURGBP

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

with the EURGBP, the main one being that it has calm trends without any significant sharp jumps.

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

These are all myths and misconceptions, and I will try to explain to you why.

First, let's look at both currencies separately to understand what actually influences price movement.

Let's start with the British pound. The GBP is the third most widely used and circulated currency in the world. Its popularity is second only to the dollar and the euro, but this wasn't always the case. Before World War II, the pound was the leading global currency, used by many countries. The pound was so popular and widespread that some countries even used it locally as a second currency after their national currency.

This is explained by the fact that Great Britain was a colonial power, and the pound was the currency of choice in many of its colonies. However, after World War II, the pound lost ground to the strengthening US economy and its dollar. Today, Great Britain has one of the strongest economies in the world. It's worth remembering that Great Britain is a member of the European Union, so it enjoys very strong trade relations with Western Europe and the US.

Therefore, the pound's exchange rate is significantly influenced by trade with the US and Europe, as well as energy prices. The most significant news that truly drives the pound is the Bank of England's interest rate data. Key domestic indicators on the industrial sector, jobs, GDP, and statements from the country's leadership should also be considered.

While predicting the pound's exchange rate is difficult, but still possible based on economic indicators, the situation with the European currency is a bit more complicated. The euro is the currency of the eurozone. As you can imagine, the eurozone includes a large number of countries, which influence the euro's exchange rate to varying degrees. For example, the crisis in Athens dealt a significant blow to the euro's global prestige, significantly weakening its value.

Long-term forecasting for the euro is very difficult at this stage, as conflicting data from different countries can produce completely unpredictable results. However, when trading euro currency pairs, I recommend paying special attention to the performance of the strongest eurozone countries, such as Germany and France. Typically, good news on the German economy can more than boost the euro against the backdrop of poor performance in other eurozone countries.

If I were to name a single indicator that strongly influences the euro, I'd confidently say it's the European Central Bank's interest rates, unemployment rates (by country), and consumer prices. It's also worth noting that over the past year, the European currency has become politicized due to the tense trade situation with Russia.

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

The EURGBP currency pair is very active during the European trading session and very passive during the Asian session. Fluctuations in the currency pair can exceed 150 pips per trading session. It's important to remember that the US dollar also influences the economies of both countries, as both countries have strong ties to the US. Therefore, it's important to consider US fundamentals and their impact on the euro and pound.

In conclusion, I hope I've debunked the myth of the EURGBP currency pair's easily predictable movements, as the euro is currently one of the most unpredictable currencies, and therefore the currency pair is too. Thank you for your attention, and good luck!