EUR/GBP is the price of one euro in British pounds. It is a cross pair, meaning the US dollar is not involved, so it isolates the difference between the euro area and the United Kingdom: European Central Bank policy against Bank of England policy, and one economy’s data against the other’s. It usually moves less in a day than either EUR/USD or GBP/USD.
Key takeaways
- A cross rate is derived from two dollar pairs: EUR/GBP is approximately EUR/USD divided by GBP/USD.
- Because both economies are closely linked and share most of the same shocks, the pair tends to trade in ranges for long periods.
- UK political and budget events have produced its largest moves, including the 2016 referendum on European Union membership.
- One pip is 0.0001 and is worth £10 on a standard lot, so its dollar value depends on GBP/USD.
- It is the natural pair for a view on Britain against Europe with no opinion on the dollar.
| What the quote means | Pounds needed to buy one euro |
|---|---|
| Base / quote currency | Euro (EUR) / pound sterling (GBP) |
| Type | Cross pair: no US dollar |
| How it is derived | EUR/USD ÷ GBP/USD |
| Pip | 0.0001, the fourth decimal place |
| Pip value, 1.00 lot | £10 (about $13 when GBP/USD is 1.3000) |
| Contract size, 1.00 lot | 100,000 EUR |
| Most active window | European morning, 07:00–11:00 UTC |
| Central banks to watch | European Central Bank, Bank of England |
| At Marketsall | Not currently offered; available pairs are listed on the Currencies page |
What is EUR/GBP and how is it calculated?
A price of 0.8500 means one euro costs 85 pence. A rising chart means a stronger euro or a weaker pound. Banks rarely trade euros for pounds directly in size; the rate is kept in line with the two dollar pairs. If EUR/USD is 1.1000 and GBP/USD is 1.3000 (illustrative prices), EUR/GBP is 1.1000 ÷ 1.3000 = 0.8462. Any gap between the quoted cross and that calculation disappears almost instantly.
This has a practical consequence: EUR/GBP moves only when the euro and the pound move by different amounts against the dollar. A day when the dollar rallies against everything can leave EUR/GBP almost unchanged. The terms are explained in major, minor and exotic pairs.
What moves EUR/GBP?
| Driver | How it tends to work | What to watch |
|---|---|---|
| The ECB–Bank of England rate gap | If UK rates are expected to stay higher for longer than euro area rates, the pound tends to gain and EUR/GBP falls. | ECB and Bank of England rate decisions |
| Relative inflation | Stickier UK inflation has often kept the Bank of England more cautious about cutting than the ECB. | UK CPI and wages, euro area HICP flash estimate, what CPI is |
| Relative growth | Better UK data than euro area data favours the pound, and the reverse. | PMI surveys for both economies, GDP |
| UK politics and budgets | The pound is the more politically sensitive side. Budget credibility matters. | Budget statements, elections, gilt market |
| Energy prices | Both economies import energy, but the effects differ in size and timing. | European gas prices, Brent crude |
When the range breaks
The pair can sit in a band of a few pence for months and then move sharply on a UK-specific shock. After the referendum of 23 June 2016 the pound suffered its largest one-day fall on record against the dollar, more than 8%, and EUR/GBP jumped in the same session. The 2022 budget episode produced a similar, shorter spike. Range trading assumptions fail on days like these.
Which pair fits which view?
| Your view | Pair that expresses it | Why |
|---|---|---|
| The UK will outperform the euro area; no view on the dollar | EUR/GBP (lower) | The dollar is removed from the trade |
| The dollar will weaken broadly | EUR/USD or GBP/USD | EUR/GBP may barely move |
| The Bank of England will cut before the ECB | EUR/GBP (higher) | Isolates the policy gap |
| US data will surprise | A dollar pair | EUR/GBP has no direct US exposure |
Holding EUR/GBP alongside EUR/USD or GBP/USD creates overlapping exposure. Correlated positions explains how to see the net position.
When is EUR/GBP most active?
| Event | Local time | UTC (summer / winter) | Frequency |
|---|---|---|---|
| UK CPI and jobs data | 07:00 UK time | 06:00 / 07:00 | Monthly |
| Euro area HICP flash estimate | 11:00 CET | 09:00 / 10:00 | Monthly |
| Bank of England decision | 12:00 UK time | 11:00 / 12:00 | Eight times a year |
| ECB decision | 14:15 CET | 12:15 / 13:15 | Eight times a year |
On some Thursdays the Bank of England and the ECB announce on the same day, a little over an hour apart. See London vs New York sessions, global market trading hours and the economic calendar.
EUR/GBP pip value and position size
| Lot size | Units | Value of 1 pip | In dollars when GBP/USD is 1.3000 |
|---|---|---|---|
| 1.00 (standard) | 100,000 EUR | £10 | $13.00 |
| 0.10 (mini) | 10,000 EUR | £1 | $1.30 |
| 0.01 (micro) | 1,000 EUR | £0.10 | $0.13 |
The pip is worth more in dollars than in EUR/USD, which partly offsets the smaller daily range. With EUR/USD at 1.1000 (illustrative), 0.10 lots is €10,000, or $11,000; at 1:200 leverage the margin is $55 . A 40-pip adverse move costs £40, about $52. Use position sizing.
What it costs to trade EUR/GBP as a CFD
As a CFD, EUR/GBP is traded without delivery of currency: the account is credited or debited with the price difference. See what a CFD is and spot FX vs CFDs.
| Cost | When it applies | Note for EUR/GBP |
|---|---|---|
| Spread | Every trade, at entry | Wider than the two dollar pairs it is derived from; tightest in the European morning |
| Commission | Varies by provider; Marketsall does not charge commission on the currency pairs it offers | Cost is built into the spread |
| Swap | Positions held past the daily rollover | Based on the euro–sterling rate gap and your direction. See triple swap Wednesday. |
| Slippage | Fast markets, gaps, news | Most likely on UK data at 07:00 UK time and on central bank days |
Key risks
Range breaks. Long quiet periods encourage large positions, which are then exposed when a UK shock arrives.
Overlapping exposure. The cross is built from EUR/USD and GBP/USD, so holding it with either one duplicates risk.
Thin hours. Outside the European day liquidity is low and spreads widen.
Leverage. A higher pip value in dollars means losses add up faster than the small ranges suggest.
Risk warning. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, the products offered on this website may not be suitable for all investors because of the risk of losing all of your invested capital. You should never invest money that you cannot afford to lose, and never trade with borrowed money.
Is EUR/GBP available at Marketsall?
EUR/GBP is not currently offered at Marketsall. The currency pairs available on MetaTrader 5 and Web Trader are listed, with live prices, on the Currencies page.
Frequently asked questions
What is a cross currency pair?
A cross currency pair is one that does not include the US dollar, such as EUR/GBP or EUR/JPY. Its price is derived from the two related dollar pairs, so EUR/GBP is approximately EUR/USD divided by GBP/USD.
How is EUR/GBP calculated?
Divide EUR/USD by GBP/USD. If EUR/USD is 1.1000 and GBP/USD is 1.3000, EUR/GBP is 0.8462, meaning one euro costs about 84.6 pence. Dealers keep the quoted cross in line with this calculation continuously.
How much is one pip worth in EUR/GBP?
One pip is 0.0001. On a standard lot of 100,000 euros a pip is worth £10. In dollars that is 10 multiplied by the GBP/USD rate: about $13 when GBP/USD is 1.3000.
Why is EUR/GBP less volatile than GBP/USD?
The UK and euro area economies are closely linked and are hit by many of the same shocks, so the euro and the pound often move in the same direction against the dollar. EUR/GBP only reflects the difference between them, which is usually smaller than either move on its own.
When is EUR/GBP most active?
EUR/GBP is most active in the European morning, from about 07:00 to 11:00 UTC, when UK and euro area data are released. Bank of England decisions at 12:00 UK time and ECB decisions at 14:15 Central European Time are the other main triggers.
Related reading
Plan for the range to break
Before fading the edges of EUR/GBP's familiar band, read range trading strategy for the conditions that approach depends on and breakout trading strategy for the signs traders look for when a band gives way.
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