EUR/GBP strategy: trading the two Europes against each other
EUR/GBP isolates the euro-sterling relationship, removing the dollar. The pair is range-prone, spread-friendly and driven by the relative paths of the ECB and the Bank of England.
What's your method?
- the drivers you watch (rates, growth, politics)
- how you trade its ranges without forcing moves
- the event that moved it most for you
The cross rates guide and interest rates guide frame the pair.
Background: Cross rates explained: how EUR/GBP and EUR/JPY are calculated from dollar pairs
A cross rate is an exchange rate between two currencies that doesn't include the US dollar. How cross rates are derived from dollar pairs, with worked examples, and why crosses often cost more to trade.
What is a cross rate in forex?
An exchange rate between two currencies that doesn't include the US dollar, such as EUR/GBP, EUR/JPY or AUD/NZD.
How do you calculate EUR/GBP from EUR/USD and GBP/USD?
Divide EUR/USD by GBP/USD. With EUR/USD at 1.1050 and GBP/USD at 1.3000, EUR/GBP is 0.8500.
Comments
Log in to join the discussion. Comments follow the community guidelines.
Log in to commentLoading comments…