The EUR/GBP spot price is a representation of the amount of pound sterling that can be purchased for every euro.
An extremely important currency ratio, EUR/GBP prices can have a dramatic impact on the UK economy as well as those countries situated in the eurozone which use the single currency.
Both currencies are among the list of those most traded around the globe, with GBP in particular viewed as a safe haven currency in times of difficulty. However, the euro is the second most-traded currency in the world, behind only the US dollar.
Factors that can have a significant impact on the value of the euro include eurozone manufacturing output and the degree of confidence among investors that economies using the euro are on the right path for growth - as is the case with all currencies, but it is more pronounced with the euro as a result of the number of nations it encompasses.
In total, 15 EU member states currently use the euro as after it was introduced in 2002.
Sterling on the other hand is the currency of the UK and is largely influenced by oil production in the North Sea, as well as what is going on in terms of the value of the euro. The EUR/GBP currency pair is an extremely liquid relationship, with price rises in one currency typically having an inverse reaction on the other.
Recent years have seen a weakness in the euro as a result of ongoing fears over the state of a number of eurozone economies, most notably Greece. This has served to weaken the single currency.
However, the global financial downturn has also had a dramatic impact on the UK economy and therefore, while the exchange rate of sterling to the euro has improved somewhat over recent years, it still remains below historic highs of £1.45/€1 seen between mid-2003 to mid-2007.