Chunnel
Forex slang for the EUR/GBP currency pair, named after the Channel Tunnel.
Quick answer
Chunnel is trader slang for the EUR/GBP cross rate, referencing the Channel Tunnel that links the two economies. It quotes euros against sterling directly, without the US dollar.
Definition
Chunnel is trader slang for the EUR/GBP (Euro/British Pound) cross rate. The nickname references the Channel Tunnel connecting England and France, symbolizing the link between the two currencies.
How It Works
- "Buying the Chunnel" = going long EUR/GBP
- "Selling the Chunnel" = going short EUR/GBP
- Cross rate (no USD) - derived from EUR/USD and GBP/USD
- Reflects relative strength of Eurozone vs UK economy
Trading Tips
1
Less volatile than major pairs
2
Sensitive to ECB vs Bank of England policy divergence
3
Brexit news has historically caused large moves
Related Terms
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