GBP/EUR Forecast: Pound Unmoved Against Euro After UK and Eurozone CPI

June 19, 2025 - Written by Ben Hughes

STORY LINK GBP/EUR Forecast: Pound Unmoved Against Euro After UK and Eurozone CPI

The Pound Euro (GBP/EUR) exchange rate was muted on Wednesday following the release of the UK’s and Eurozone’s latest consumer price indices (CPI).

At the time of writing, the GBP/EUR was trading at around €1.1690 virtually unchanged from Wednesday’s opening levels.

The Pound (GBP) traded with relative stability on Wednesday, brushing off a slight slowdown in UK inflation ahead of the Bank of England’s (BoE) policy announcement.

May’s inflation data revealed headline CPI held steady with expectations at 3.4%, while core inflation slipped to 3.5%, undershooting the forecasted 3.6%.

Despite the softer figures, the Pound avoided notable losses, as investors largely anticipated the BoE would leave interest rates unchanged on Thursday.

With both measures of inflation still comfortably above the central bank’s 2% target, markets remained cautious about pricing in an imminent rate cut, allowing Sterling to maintain a steady footing through mid-week trade.

The Euro (EUR) was largely directionless on Wednesday, showing limited movement against most major currencies following the release of the Eurozone’s finalised inflation figures for May.


The data confirmed that core inflation eased from 2.7% to 2.3%, while headline inflation fell below the European Central Bank’s (ECB) 2% target, dropping from 2.2% to 1.9%.

Despite the marked slowdown in price pressures, the Euro avoided any sharp losses, as the figures aligned with preliminary estimates and were already priced into expectations, muting their impact on EUR exchange rates.

Looking ahead to Thursday, the Pound Euro (GBP/EUR) exchange rate is likely to hinge on the outcome of the Bank of England’s (BoE) latest interest rate decision.

While no change in policy is expected, investor focus will be on the BoE’s forward guidance.

Recent underwhelming UK data, including soft GDP growth and a cooling labour market, have heightened speculation over potential rate cuts.

If policymakers strike a dovish tone, Sterling could come under pressure, pulling GBP/EUR lower.

Meanwhile, in the absence of high-impact Eurozone data, attention may shift to remarks from European Central Bank (ECB) officials.


Likewise, any dovish remarks could weigh on the single currency.

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TAGS: Pound Euro Forecasts