British Pound to Euro - GBP to EUR
|GBP British pound sterling|
|Units:||One Pound = 100 pence (p)|
|Also known as:||Sterling, quid|
|Central bank:||Bank of England|
GBP is the currency of the United Kingdom of Great Britain & Northern Ireland.
|Units:||One Euro = 100 cents (c)|
|Central bank:||European Central Bank (ECB)|
EUR is the currency of 17 countries within the European Union, known as the eurozone. These are Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Portugal, Slovenia, Slovakia, Estonia, Spain, Cyprus and Malta.
Why does GBP/EUR move in value?
GBP/EUR is affected by economic and political news that points to a weakening or strengthening in the British or European economies.
Interest rates – the Bank of England (BoE) sets interest rates for the UK and the European Central Bank (ECB) sets them for the Eurozone, each making an announcement once a month, in usual times. The days surrounding a rate decision can see GBP/EUR move.
Economic data – Economic data released by governments and other organisations are used as an indication of the strength of economies, and well as future trends.
Politics and events – Political news that threatens to destabilise or make business more difficult, such as Brexit and the pandemic, are likely to weaken a currency.
The euro is the second most-traded currency in the world and the pound sterling is fourth most traded.
GBP/EUR can be bought at any time, but is most commonly traded between 6am and 4pm GMT. These are the hours when we see most movement in the currency pairing.
You can call Smart Currency Exchange on 0808 163 0102 between 8am and 6pm to make a trade.
Alternatively, use our online trading platform.
Taking the risk out of your currency exchange
When making a transaction into another that takes place on one day, a spot contract will normally be the simplest option.
If, however, your GBP/EUR transaction will take a period of time to complete – such as a property purchase which normally takes up to three months, or a regular payment from a private pension that funds your lifestyle overseas, it is often most sensible to lock in your rate with a forward contract.
A forward contract fixes your GBP/EUR rate for up to a year ahead, ensuring that if the pound weakens before you complete on the payment, you won’t be left out of pocket.
Historical GBP/EUR rates
Since the euro became a currency on 1 January 1999 it has, overall, gradually strengthened against sterling. In the first few years you could buy around €1.60 for every pound, but since 2009 it has generally traded between €1.10 and €1.20.
Although the euro had gained in strength since its inception anyway, two developments severely weakened GBP/EUR. These were the global financial crisis of 2008/9 and the Brexit referendum in mid-2016.
Between these two there was a brief period in 2015 when the pound had the upper hand during the Greek debt crisis.