Currency pair
GBP/EUR — the British pound against the Euro
The workhorse pair for UK importers. Because so much UK trade settles in euros, small moves here affect a large share of landed cost.
Reference market rates
GBP/EUR reference rate and history
End-of-day published reference rates. Switch pair or period to compare.
GBP / EUR
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Indicative FX reference rate
Reference rates are published once per working day, so the chart shows end-of-day values rather than intraday movement. Movement shown is against the previous published value. Past movement is not an indication of future rates.
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- Business payments worldwide
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Context
What moves GBP/EUR
The workhorse pair for UK importers. Because so much UK trade settles in euros, small moves here affect a large share of landed cost.
GBP/EUR is the pair most UK importers deal with day to day, because the Eurozone remains the UK's largest single trading bloc for goods. Suppliers of components, food, machinery and packaging across the EU typically invoice in euros, so this pair sits directly on the cost line of a large share of UK businesses' purchase invoices.
It is quoted from the sterling side — how many euros one pound buys — which is the convention most UK finance teams are used to working with when budgeting landed costs. Because the volumes involved in UK-EU trade are so large, even modest percentage moves can represent a meaningful absolute change in cost for businesses that import regularly.
The pair is also relevant to UK companies with EU-based staff, contractors or group entities, where payroll or intercompany invoices are set in euros but funded from a UK bank account.
The recurring drivers of GBP/EUR
Bank of England versus European Central Bank policy
The relative stance of the Bank of England's Monetary Policy Committee and the European Central Bank's Governing Council is the central theme in most GBP/EUR commentary. Rate decisions, and the tone of the press conferences that follow them, shape expectations for the gap between UK and Eurozone borrowing costs, which in turn affects the pair.
UK and Eurozone inflation and PMI data
UK CPI from the ONS and Eurozone flash and final HICP inflation figures from Eurostat are tracked closely, alongside purchasing managers' index (PMI) releases for manufacturing and services in both the UK and the Eurozone's larger economies. These surveys are often the earliest signal of a shift in relative growth momentum.
UK-EU trade and political developments
Because the pair is so directly tied to a single trading relationship, developments specific to UK-EU trade arrangements, customs processes or regulatory alignment can influence sentiment toward the pair in a way that is less relevant to, say, GBP/JPY.
Who carries GBP/EUR exposure
- Importers of European-manufactured goods, components or food products
- Businesses paying EU hauliers, freight forwarders or logistics providers
- UK companies with intercompany invoices to or from an EU subsidiary
- Firms paying EU-based contractors, agencies or software vendors in euros
- Retailers or wholesalers buying stock from continental European suppliers ahead of a season
What a rate move does to a margin
For illustration only: a UK wholesaler has a recurring €80,000 monthly order from a German supplier. If sterling were hypothetically 1.5% weaker against the euro than in the previous month, the same €80,000 order would cost roughly £1,200 more in sterling terms to settle. This is illustrative only and does not reflect any actual or forecast rate.
Managing the exposure
- Understand how much of your annual cost or revenue is denominated in EUR
- Identify the point in your cycle where the rate becomes locked in commercially
- Decide what proportion of that exposure you are comfortable leaving to the market
- Review the policy at a set interval rather than only when the rate moves against you
Spot conversion
Convert GBP to EUR at a rate confirmed before you commit, for payments settling now.
Forward contracts
Fix a rate today for settlement on a future date, so a known cost stays known. Subject to eligibility and onboarding.
Multi-currency capability
Hold, send and receive GBP and EUR alongside other supported currencies, subject to eligibility.
Where it's used
Destinations that settle in EUR
If you pay or receive in Euro, these are the country guides most relevant to you.
Other pairs
Related currency pairs
- GBP/USDReference rateThe most widely quoted sterling pair, driven largely by the relative interest-rate and growth outlook of the UK and the United States.View GBP/USD
- EUR/GBPReference rateThe same relationship viewed from the euro side — the quote European suppliers and customers usually work from.View EUR/GBP
- EUR/USDReference rateThe world's most traded pair. It matters to UK businesses whenever euro costs are set against dollar-priced inputs.View EUR/USD
- USD/JPYReference rateA benchmark for global risk sentiment, and relevant to anyone buying Japanese components priced against the dollar.View USD/JPY
- GBP/JPYReference rateRelevant to UK importers of Japanese machinery, components and vehicles. Historically one of the more volatile sterling crosses.View GBP/JPY
- GBP/AUDReference rateMoves with commodity prices and Australian interest-rate expectations as much as with sterling itself.View GBP/AUD
FAQ
GBP/EUR questions
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