Pound-to-Euro Rate Dips to 1.176 on EUR USD Reaction to GDP Data

May 1, 2025 - Written by David Woodsmith

STORY LINK Pound-to-Euro Rate Dips to 1.176 on EUR USD Reaction to GDP Data

The Pound-to-Euro exchange rate ticked lower on Wednesday following the publication of the Eurozone’s latest GDP data.

At the time of writing, the GBP/EUR was trading at around €1.1749, down roughly 0.2% from Wednesday’s opening levels.

On Wednesday, the Euro (EUR) was mixed against its peers, strengthening against some currencies but weakening against others, following the release of the Eurozone’s latest GDP figures.

The preliminary GDP reading for the first quarter of the year came in higher than expected, increasing from 0.2% to 0.4% instead of remaining unchanged as expected.

However, despite this positive data, the Euro only gained ground against a few of its competitors.

On Wednesday, the Pound (GBP) had a tough time attracting buyers and weakened against several of its major counterparts amid a lack of UK economic data.

The decline in Sterling was largely fuelled by growing expectations of an interest rate cut by the Bank of England (BoE) ahead of their upcoming policy meeting next week.


With a 25 basis-point rate cut almost fully expected by markets, GBP struggled to gain traction from investors, lacking any other positive economic drivers to boost its performance.

Looking ahead, Thursday is expected to be quiet on the economic calendar for both the UK and the Eurozone, which means we're likely to see minimal movement in the Pound to Euro (GBP/EUR) exchange rate.

However, Friday could bring volatility for GBP/EUR, driven by the release of the Eurozone's latest consumer price index (CPI).

While headline inflation is forecast to ease, core inflation is expected to rise slightly. This mixed reading could create headwinds for the Euro at the end of the week.

For the Pound, the UK economic data will remain sparse for the rest of the week, so GBP exchange rates are likely to continue to follow broader market sentiment.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Pound Euro Forecasts