Chunnel
Forex slang for the EUR/GBP currency pair, named after the Channel Tunnel.
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.
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
Less volatile than major pairs
Sensitive to ECB vs Bank of England policy divergence
Brexit news has historically caused large moves
Chunnel Example
Say EUR/GBP grinds between 0.8500 and 0.8600 for months, twitching on every ECB or BoE headline. That is the chunnel: a slow cross driven by rate gaps between Frankfurt and London rather than global risk.
How Traders Use Chunnel
Trade the chunnel on central-bank divergence, not momentum. It ranges more than it trends, so fade extremes with small size and save trend tactics for dollar pairs.
Related Terms
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