Pound-to-Euro Rate Today: GBP Stuck Around 1.158, Where Next?

July 8, 2025 - Written by Tim Boyer

STORY LINK Pound-to-Euro Rate Today: GBP Stuck Around 1.158, Where Next?

The Pound Euro (GBP/EUR) exchange rate traded mostly flat on Tuesday as the Eurozone released Germany’s latest balance of trade data.

At the time of writing, the GBP/EUR was trading at around €1.1594, virtually unchanged from Tuesday’s opening levels.

The Euro (EUR) traded with resilience on Tuesday, holding steady against most major currencies despite some underwhelming data from Germany and a broadly upbeat market mood.

Germany’s trade figures for May showed a wider-than-expected surplus, rising to €18.4 billion.

However, this was overshadowed by a sharper-than-forecast 1.4% drop in exports, a concerning signal for Europe’s largest export-led economy and a potential drag on the Eurozone’s overall trade outlook.

Ordinarily, both Germany’s export slump and the day’s risk-on sentiment might have undermined the Euro’s appeal.

However, the single currency found support as the US Dollar (USD) extended recent losses.


Given the negative correlation between the two currencies, the Euro benefited from the ‘Greenback’s’ weakness, allowing it to remain broadly firm despite the less-than-stellar German data and improvement in risk appetite.

The Pound (GBP) lacked clear direction on Tuesday, with trading dynamics largely dictated by broader market mood amid another quiet day for UK economic data.

As risk appetite improved across global markets, investors gravitated towards more volatile currencies.

Despite its nature as an increasingly risk-sensitive currency, this saw Sterling slip against acutely risk-sensitive currencies such as the Australian Dollar (AUD) and New Zealand Dollar (NZD), which benefited from the upbeat sentiment.

At the same time, the Pound managed to hold its ground against its safe-haven peers such as the Euro and the US Dollar, as demand for safe-haven assets eased.

With no domestic data to anchor the Pound, the currency drifted without a clear trajectory.

Looking to Wednesday’s European session, the Pound Euro (GBP/EUR) exchange rate is expected to remain sensitive to shifts in risk sentiment, with no key data releases scheduled from either the UK or the Eurozone.


In the absence of economic catalysts, investor mood will likely steer movement. If Tuesday’s upbeat sentiment persists, the Pound could remain supported during mid-week trade, helping the currency pair stay relatively stable.

However, a souring in market confidence may favour the Euro due to its safe-haven status, potentially placing downward pressure on GBP/EUR as the session unfolds.

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TAGS: Pound Euro Forecasts