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Pairing – The amount of Great British pounds (GBP) that one can buy for every European Euro (EUR).
EUR – World’s second most traded currency
GBP - World’s fourth most traded currency
Political and economic factors – The global economic downturn has had, and continues to influence the strength of the Euro. However, recent political movements in Great Britain, specifically the result of the Brexit vote and its aftermath, have had a similar impact on the value of the pound.
Investor confidence – The faith that investors have in the economic state of countries in the Eurozone can affect this pairing.
Manufacturing – The manufacturing output of the Eurozone and of the UK can also affect this pair.
Inverse movements – More than perhaps any other, the value of the pound and the euro will often move in different directions, as what is good for the pound is usually bad for the euro, and vice versa.