Euro Exchange Rate
Ahh, Europe: home to the Mona Lisa, the David, the Guggenheim museum Bilbao, and the top European tourist attraction: Disneyland Paris.
What influences the GBP/EUR exchange rate?
As of 2016, sovereign debt risk in some EU member countries (like Italy) may continue to be an important factor for the EUR/GBP exchange rate.2 The aftermath of the Brexit vote may also continue to play a role. According to Bank of England Governor Mark Carney, "some market and economic volatility can be expected as this process unfolds”.3
Interest rate differentials may also play a role in determining the market rate between the U.K. and Europe. As the largest economy in the eurozone, Germany’s economic data could potentially influence EUR/GBP valuations as well.
“The United Kingdom's relationship with the EU has long been one of the most divisive, emotive issues in British politics.”
---The BBC 1st April, 2014
The U.K. remains the world’s 5th largest economy by nominal GDP. When taken as a whole, the eurozone makes up the world’s second largest economy just behind the U.S.
According to the BBC, Britain and the E.U. have had “a long and rocky relationship.”4 For much of modern history, British allies on the continent have also at one time or another been rivals. Since 1945, the U.K. has a history of both trying to join, and trying to get out of, various agreements with Europe.
57% of British exports are bound for Europe--making the E.U. the dominant trade partner for the U.K., whereas only 16% of E.U. exports reach British shores.
If you need to make a payment to Europe, use OFX so you don’t get stung by high bank margins and fees. Register today to get access to our low rates and personalised service.
Currency Name: Euro.
Currency Code: EUR
Currency Symbol: €
Central Bank: European Central Bank
Countries Used In: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.
Major Unit: One euro
Minor Unit: One cent.
Note Denominations: €5, €10, €20, €50, €100, €200, €500
Coin Denominations: 1c, 2c, 5c, 10c, 20c, 50c, €1, €2