Pound-to-Euro Exchange Rate Dips following Duo of Eurozone Data

May 7, 2025 - Written by Tim Boyer

STORY LINK Pound-to-Euro Exchange Rate Dips following Duo of Eurozone Data

The Pound Euro (GBP/EUR) exchange rate was on the back foot on Wednesday following the release of some mixed economic data from the Bloc.

At the time of writing, the GBP/EUR was trading at around €1.1740, down roughly 0.3% from Wednesday’s opening levels.

The Euro (EUR) enjoyed broad gains on Wednesday, climbing against most major currencies despite a mixed bag of economic data from the Eurozone.

Germany set the tone early with a surprisingly strong factory orders report for March, which showed a 3.6% jump that smashed expectations of just 1.3%.

However, retail sales figures for the same month told a different story, dipping slightly by 0.1% instead of holding steady as forecast.

Even so, the weaker retail sales data didn’t hold the Euro back, and the currency pushed higher across the board.

With no fresh economic data to influence trading on Wednesday, the Pound (GBP) saw little movement overall, registering only slight gains against a few major currencies.


Market participants appeared cautious, refraining from significant moves ahead of the Bank of England’s (BoE) interest rate announcement expected on Thursday afternoon.

Even so, the Pound found some support, underpinned by optimism surrounding the UK’s trade agreement with India, lifting sentiment around the UK’s economic prospects ahead of the central bank’s upcoming decision.

The Pound Euro (GBP/EUR) exchange rate could be in for some movement on Thursday, with attention split between central bank commentary in the UK and key economic figures from the Eurozone.

In the UK, although a 25 basis-point interest rate cut from the Bank of England is widely expected and already priced in, traders are likely to focus more on the tone of the BoE’s forward guidance.

Any signs that policymakers are in no hurry to ease rates further could offer the Pound a lift.

Meanwhile, in the Eurozone, Germany is due to publish its March trade balance and industrial production data.

If those figures reveal weakness, especially in the crucial industrial sector, it could weigh heavily on the Euro and limit its upside.

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TAGS: Pound Euro Forecasts