Crosses: EUR/GBP, EUR/JPY and GBP/JPY

A US jobs report lands. EUR/USD drops 60 pips, GBP/USD drops 70, and EUR/GBP on the next screen barely flickers. EUR/GBP is a cross, so the dollar move cancels out.

A cross is two dollar pairs in disguise

EUR/USD 1.0850GBP/USD 1.2700

EUR/GBP now

Change vs start

Pip value, 1 lot

This move, 1 lot ≈

EUR/GBP built from EUR/USD and GBP/USD. The dollar sits in both legs, so a 1% dollar move lifts both and the cross barely shifts. Tap the other chips to move one currency on its own. Illustrative prices. Pip value assumes a US-dollar account and one standard lot of 100,000 EUR.

A cross pair is a pair without the US dollar. Most currency trading still runs through the dollar, so every cross is priced from two dollar pairs, and the dollar drops out of the sum:

EUR/GBP = EUR/USD ÷ GBP/USD. Dollars per euro divided by dollars per pound leaves pounds per euro.
EUR/JPY = EUR/USD × USD/JPY. Euro into dollars, then dollars into yen.
GBP/JPY = GBP/USD × USD/JPY. The same chain, starting from the pound.

Banks also trade crosses directly, but arbitrage keeps the direct price locked to the one the dollar pairs imply.

When the news is about the dollar, both legs move together and the effect largely cancels. A cross moves when one of its own two currencies moves: the euro, the pound or the yen.

Three crosses, three personalities

EUR/GBP

Base: euro (EUR) · Quote: pound sterling (GBP)

European Central Bank (ECB) vs Bank of England (BoE)

Two neighbouring economies whose currencies tend to drift together: small daily ranges, so the spread matters more.

LiquidityDeep

Deep in London hours, thin outside them

Typical volatilityQuiet

Often 30–50 pips

Typical spread (shorter bar = cheaper)Moderate

A little wider than EUR/USD, and large next to its range

Sensitivity to risk moodLow

Little direct link: both sides tend to react alike

Pip value per standard lot≈ $12.70At GBP/USD 1.2700; changes with that rate

One pip is0.0001Fourth decimal

When it moves (UK time)

Most active in the London session (about 07:00–16:30), busiest in the morning; quiet outside it. Illustrative UK times; Asian-session hours shift by about an hour with daylight saving.

Main drivers

ECB vs BoE rate gap
UK inflation and wages
Euro-area inflation and PMIs
UK politics

Read the EUR/GBP trading guide →

Switch between the three crosses. Compare the volatility and risk-mood gauges, the busy hours and the pip value. Typical behaviour, not a forecast; ranges and spreads are illustrative and vary with conditions and broker.

EUR/GBP is two neighbouring economies. Shocks such as a jump in European gas prices often hit both, so the cross only reflects the difference. It is usually the quietest of the three, often 30–50 pips a day, and it keeps London hours.

EUR/JPY and GBP/JPY pair a European currency with the yen, a classic safe haven. In risk-off moods investors buy yen, so both crosses tend to fall; in calm, risk-on moods they tend to rise. The pound leans mildly risk-on, so on GBP/JPY both legs often push the same way. That is why it usually has the highest volatility here, often 100–200 pips a day.

Two costs change too. The spread is usually a little wider than on the dollar pairs, because fewer dealers quote crosses directly. And pip value is set by the quote currency, not the dollar. In a dollar account, one standard lot of EUR/GBP is £10 a pip, about $12.70 at GBP/USD 1.27. A yen cross is ¥1,000 a pip, about $6.67 at USD/JPY 150. Neither is the $10 you are used to.

Putting numbers on it

Example: three news days, $5,000 account, 0.10 lots

Start. EUR/USD 1.0850 ÷ GBP/USD 1.2700 = EUR/GBP 0.8543.
Dollar news. The dollar weakens 1%: EUR/USD rises to 1.0959 and GBP/USD to 1.2827. 1.0959 ÷ 1.2827 = 0.8544. Under half a pip of change.
Pound news. The pound alone falls 1%: GBP/USD 1.2573, EUR/USD unchanged. 1.0850 ÷ 1.2573 = 0.8630, up 86 pips.
What that is worth. 0.10 lots is 10,000 euros, so a pip is £1. At the new GBP/USD of 1.2573 that is about $1.26. 86 × $1.26 ≈ $108, or 2.2% of the account, gained or lost depending on your side.
Risk-off on GBP/JPY. Start: 1.2700 × 150.00 = 190.50. The mood sours: GBP/USD slips 0.6% to 1.2624 and USD/JPY falls 0.8% to 148.80 as the yen is bought. 1.2624 × 148.80 = 187.85: down about 265 pips, or 1.39%. The two legs’ moves roughly add: 0.6% + 0.8% ≈ 1.4%.
What that is worth. At 0.10 lots a pip is ¥100, or ¥100 ÷ 148.80 ≈ $0.67. 265 × $0.67 ≈ $178, or 3.6% of the account if you held it long. Same lot size as the EUR/GBP trade, a much larger swing.

Leverage magnifies these moves in both directions, and a stop can fill beyond its level when a risk-off move gaps. Size each cross from its own pip value and stop: the lesson on sizing across pairs shows how.

Try it

GBP/USD 1.2700USD/JPY 150.00

GBP/JPY now

Change vs start

Pip value, 1 lot

This move, 1 lot ≈

GBP/JPY as GBP/USD × USD/JPY, starting on an illustrative risk-off day. Try the dollar chip next, then drag either slider. Pip value assumes a US-dollar account and one standard lot of 100,000 GBP.

Notice how the risk-off chip moves both legs down and GBP/JPY falls further than either, while the “Dollar weakens 1%” chip moves both legs a full 1% and the cross barely changes.

Quick check

Question 1 of 4
EUR/USD is 1.0800 and GBP/USD is 1.2600. What is EUR/GBP?
Question 2 of 4
A strong US jobs report lifts the dollar about 1% against both the euro and the pound. What does EUR/GBP most likely do?
Question 3 of 4
Markets turn fearful. Investors buy yen and the pound slips. Which cross would you expect to fall furthest?
Question 4 of 4
Your account is in US dollars and USD/JPY is 150.00. What is one pip on one standard lot of GBP/JPY worth?

Go deeper: EUR/GBP trading guide · EUR/JPY trading guide · GBP/JPY trading guide