Pound-to-Euro Exchange Rate Climbs amid Upbeat Market Mood

June 24, 2025 - Written by Frank Davies

STORY LINK Pound-to-Euro Exchange Rate Climbs amid Upbeat Market Mood

The Pound Euro (GBP/EUR) exchange rate strengthened on Tuesday despite the release of some mixed Eurozone and UK data, as the day’s market mood significantly underpinned the currency pair.

At the time of writing, the GBP/EUR was trading at around €1.1733, up by almost 0.5% from Tuesday’s opening levels.

The Euro (EUR) struggled for support on Tuesday, weakening against most of its peers despite the release of stronger-than-expected economic data from Germany.

The Eurozone’s largest economy published its latest Ifo business climate index, which climbed from 87.5 to 88.4 in June.

The data also surpassed forecasts of 88.2, marking the highest reading in a year.

The upbeat figures signalled improving business confidence, offering a positive signal for Germany’s economic outlook. However, the encouraging data failed to lift the Euro.

The single currency was instead pressured by a shift in market sentiment following reports of a ceasefire between Israel and Iran.


The easing of geopolitical tensions on Tuesday prompted a return to risk-on trading, which in turn weighed on demand for the safe-haven Euro.

The Pound (GBP) advanced against most major currencies on Tuesday despite the release of lacklustre UK data, though it slipped against risk-sensitive peers.

The latest CBI industrial trends orders report showed another drop in manufacturing sentiment, with the index falling from -30 to -33 in June.

This marked the weakest reading since January and came in well below forecasts for an uptick to -27, signalling deepening pessimism in the UK’s industrial sector.

Despite the disappointing data, Sterling remained resilient as the Pound was buoyed by an improvement in global risk appetite.

With its growing sensitivity to market sentiment, the positive trading conditions supported GBP exchange rates through the session.

As mid-week trade approaches, the Pound to Euro (GBP/EUR) exchange rate is expected to be largely influenced by shifts in overall market sentiment, with no key economic data due from either the UK or the Eurozone.


Should investor confidence weaken and risk appetite diminish, the increasingly risk-sensitive Pound could come under pressure.

However, if markets continue to favour riskier assets, the Euro may struggle to gain ground, potentially keeping the
GBP/EUR exchange rate supported heading into Wednesday’s session.

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TAGS: Pound Euro Forecasts