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The Euro exchange rate has frequently been talked about in the money market right from when the currency was initially launched in 2002. When the currency was launched, there were 12 nations who gave up their own currency and adopted the Euro. Great Britain was one country which did not embrace the Euro because the market for British Pounds in the exchange market was fairly strong. And while the Euro is pretty much the currency of Europe, the British Pound has mostly experienced a higher valuation when compared with Euros.

On January 1, 1999 the Euro emerged as an electronic currency. This indicated that the currency was able to be traded as a commodity in the forex market. The introduction of the Euro was seen as a stepping stone for Europe which wanted to have a centralized banking institution for Europe since 1970, so that the economic climate of Europe could be stabilized. On the currency trading market, the Euro has generally traded in the range of 1.4 and 1.7 British Pounds.

Britain's decision of not adopting the Euro has always created a little bit of a stir in the European financial markets. One of the articles in 2008 said that the explanation behind Britain's hostility towards the Euro was its lack of belief in the currency. Britain did not trust the Euro exchange rate to be as strong as its own currency. Consequently, adopting the Euro was never really in the picture for Britain, despite the fact that a few of the key European nations like Germany and France had already done so.

Britain also had doubts over the survival of the currency, as well as with the Pound always trading above the Euro. Financial analysts feel that Britain has made the right choice. Although the Euro was introduced as a forex commodity in 1999, it was released as a cash currency in 2002 on New Year's Day. This meant that Euros would then be employed in the countries which agreed to recognize the Euro as their currency.

In 2002, one British Pound was equal to 1.6 Euros. This slipped to one Euro in the summer season. Since then the Pound has always been strong when compared with the Euro exchange rate and it never fell below 1.4 Euros until recently.

Around the end of 2007 and the start of 2008, the British Pound saw a big dip in its value. The Pound sank below the Euro for the first time in 2008. The British government noted the dropping interest rates and home bubble burst driving the large dip in the Pound's value. The drop in the value made many believe that Britain should adopt the Euro for its currency, but the country is not persuaded as of yet.

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