As is the case with many currency combinations, there are a number of factors that catalyse the movement of the EUR-GBP currency pair.
Economic stability is chief among these factors.
The economic crisis of 2008-2009 saw the stability of the England economy prove to be a more sustainable option as compared to that of Great Britain. This resulted in an increase in the value of the EUR-GBP.
Other factors that influence the EUR-GBP include;
- Gross domestic product
- Levels of investment
- Political and economic climates
A careful analysis of these factors and a look at top 5 binary options beginner tips will help you embark on this business in South Africa.
Crucial Economic Indicators in Europe
The economic news of Eurozone can influence the EUR-GBP currency pair. However, traders should not be too shaken up by negative economic releases from Europe, the market appears to have factored ahead quite a lot of the news releases.
The consumer price index and European Central Bank are very hawkish when it comes to inflation and monetary policies.
Important Economic Indicators in the UK
The pound is hardly influenced by economic changes in Eurozone. As much as the UK is a member of the European Union, it does not use the euro as its currency. Therefore, the Bank of England is not as inflation-phobic as the ECB and this dovishness has been noted to cause a huge influence on the financial markets.
Outcomes of Economic Releases
binary options traders can expect sharp movements when it comes to the EUR-GBP pair. These trends can bring about a lot of volatility. For South African traders who are engaging in the EUR-GBP pair, this represents a lot of opportunities to make a sizeable profit.
It is important to study the market trends before investing in the EUR-GBP pair. This binary options trade also calls for readiness to act at any time for South African traders and all binary options traders around the world.
