As is the case with nearly every currency the strongest influence on the exchange rate of the EUR/GBP comes from the interest rate policies of the two involved countries. Typically, the country with the highest interest rate will also have the strongest currency. Because the European Union and the United Kingdom are such close trade partners there are a number of other factors that can also have a strong influence on this pair. Those include GDP, employment, trade balances, consumer confidence, and press conferences from leaders of either side.