GBP/EUR Forecast: Pound Holds Steady vs Euro After Duo of Eurozone Data

April 29, 2025 - Written by David Woodsmith

STORY LINK GBP/EUR Forecast: Pound Holds Steady vs Euro After Duo of Eurozone Data

The Pound-to-Euro exchange rate (GBP/EUR) was muted on Tuesday following the publication of two economic indicators from the Eurozone.

At the time of writing, the GBP/EUR was trading at around €1.1771, virtually unchanged from Tuesday’s opening levels.

On Tuesday, the Euro (EUR) wavered against its peers, declining against several currencies while holding steady against others.

This movement followed the release of Germany’s latest GfK consumer confidence index and the Eurozone’s overall economic sentiment reading.

Germany’s GfK consumer confidence index for the upcoming month exceeded market forecasts, rising from -24.3 to -20.6, which was better than the expected drop to -26.

This marked the highest reading since November 2024.

However, the Eurozone’s economic sentiment reading told a different story, falling from 95 to 93.6, which was below the anticipated 94.5.


This represented the lowest level since December of last year, ultimately putting downward pressure on the common currency.

On Tuesday, the Pound (GBP) failed to attract much investor interest and fell against several of its major counterparts, even in the absence of any UK data releases.

The Pound's decline was partly driven by market expectation of an interest rate cut by the Bank of England (BoE). Markets are now fully pricing in a 25 basis-point reduction at next week's meeting.

Adding to Sterling's woes were signs of an economic slowdown and rising geopolitical tensions. The EY Item Club downgraded its UK GDP forecasts, revising them from 1% to 0.8% for 2025 and from 1.6% to 0.9% for 2026.

As we look towards Wednesday, the Pound Euro exchange rate will be heavily influenced by a series of important data releases from the Eurozone.

Germany is set to unveil a range of economic indicators, including the latest figures for retail sales, unemployment, GDP, and inflation. Meanwhile, the Eurozone will publish its most recent GDP figures.

These data points could introduce volatility into the Euro, particularly if they fall short of market expectations, as we head into the middle of the week.


On the Pound's side, the UK will not be releasing any economic data on Wednesday, so Sterling is likely to be driven by broader market and global sentiment.

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TAGS: Pound Euro Forecasts