Pound-to-Euro Rate Ranging Around 1.172, Where Next?

June 26, 2025 - Written by Frank Davies

STORY LINK Pound-to-Euro Rate Ranging Around 1.172, Where Next?

The Pound Euro exchange rate (GBP/EUR) was largely muted on Wednesday amid a shortage of both UK and Eurozone data releases.

The Euro (EUR) struggled to find momentum on Wednesday, remaining under pressure against several major peers despite a lack of fresh Eurozone data.

While the single currency was able to recover some ground following Tuesday’s sharp losses, which were driven by a shift towards riskier assets, it failed to stage a meaningful rebound during the session.

Weighing on EUR sentiment was dovish commentary from European Central Bank (ECB) policymaker François Villeroy de Galhau.

In an interview with the Financial Times, Villeroy reiterated that further interest rate cuts remain on the table, fuelling expectations of additional monetary easing and keeping the Euro on the defensive.

The Pound (GBP) lacked direction on Wednesday, trading broadly flat against most major peers amid a quiet UK data calendar.

With no fresh economic releases to provide momentum, Sterling was left drifting, having already posted modest gains earlier in the week on improved risk sentiment.


Unlike Tuesday, when a shift away from safe-haven assets supported the increasingly risk-sensitive Pound, Wednesday’s more subdued market mood offered little in the way of fresh impetus.

As a result, GBP exchange rates remained rangebound through the European session.

GBP/EUR Exchange Rate Forecast: Eurozone Data to Drive Movement

Looking ahead to Thursday’s European session, the Pound Euro (GBP/EUR) exchange rate may be influenced by a handful of data releases and central bank commentary.

For the Euro, attention will turn to Germany’s GfK consumer confidence index for July.

The reading is expected to show a slight improvement, ticking up from -19.9 to -19.3.

If confirmed, the modest rise in sentiment could offer some support to the single currency.


In the UK, the Confederation of British Industry (CBI) will release its latest distributive trades survey.

While not typically a major market mover, a stronger-than-expected print may point to improving consumer activity and lift Sterling.

Additionally, speeches from several Bank of England (BoE) policymakers, including Governor Andrew Bailey, could inject volatility into GBP exchange rates.

Any hints that the BoE remains cautious about near-term rate cuts may help underpin the Pound during Thursday’s trade.

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