Pound-to-Euro Buoyed as ECB Looms

July 24, 2025 - Written by David Woodsmith

STORY LINK Pound-to-Euro Buoyed as ECB Looms

The Pound to Euro exchange rate (GBP/EUR) trended higher on Wednesday, rebounding from Tuesday’s losses in advance of the European Central Bank’s (ECB) interest rate decision.

At the time of writing, GBP/EUR is trading at roughly €1.15325.

The Euro (EUR) was stuck in neutral on Wednesday, with traders largely unwilling to shift positions ahead of the European Central Bank’s latest interest rate decision

The ECB is expected to keep interest rates steady when it wraps up its policy meeting on Thursday – potentially ending a streak of rate cuts that began a year ago. While a hold is priced in, markets will be watching the post-meeting statement closely.

If policymakers signal interest rates are at or near their neutral level, the single currency could climb, possibly retesting the highs it saw earlier this month. But if ECB officials remain cautious, or flag concerns around external risks like US-EU trade tensions, the Euro might come under pressure once again.

The Pound (GBP) found support in midweek trade following a breakthrough in global trade talks, with news of a US–Japan agreement lifting market sentiment.

According to the announcement from President Trump, Washington has agreed to scale back planned tariffs on Japanese imports, imposing a 15% levy instead of the previously threatened 25%.


The move soothed investor nerves and spurred a global equity rally, giving a lift to more risk-sensitive currencies like the Pound.

In advance of the ECB’s rate decision, some notable data could bring fresh momentum for the Pound to Euro (GBP/EUR) exchange rate, particularly from the UK’s latest PMI figures.

Analysts expect the UK services sector to show stronger activity in July, which may help reassure investors about the health of the broader economy. A positive print would likely bolster demand for Sterling.

Over in the Eurozone, PMI numbers are also due – and while some improvement is forecast, overall growth is still expected to look sluggish. With the ECB’s rate decision looming, any upside for the Euro is likely to be capped, at least in the near term.

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