Pound to Euro Rate Today: GBP Listless as Markets Await BoE Verdict

Modified: Wednesday, 6 August 2025 11:30 BST - Written by Frank Davies

STORY LINK Pound to Euro Rate Today: GBP Listless as Markets Await BoE Verdict

The Pound to Euro (GBP/EUR) exchange rate traded flat on Wednesday, with investors sitting tight ahead of the Bank of England’s (BoE) latest interest rate announcement.

At the time of writing, GBP/EUR was hovering around €1.1474, virtually unchanged from the start of the session.

Sterling struggled to find momentum on Wednesday as markets waited on the sidelines for Thursday’s BoE interest rate announcement.

A quarter-point cut is all but baked in, with the central bank expected to maintain its rhythm of quarterly adjustments. However, investors are more focused on any clues the BoE might offer regarding future policy direction.

Concerns over a softening UK labour market could steer the bank toward a more dovish path, potentially weighing on the Pound if policymakers hint at quicker or deeper rate cuts in the months ahead.

The Euro (EUR) also struggled to gain traction on Wednesday, following another batch of underwhelming data from the Eurozone.

Germany’s factory orders dropped 1% in June, defying expectations for a 1% rise. The decline was driven by a sharp fall in foreign demand, fuelling concerns about the health of Europe’s largest economy.


Retail sales data from across the bloc also underwhelmed, with monthly growth in June coming in slightly below forecasts at 0.3%, although May’s figure was revised higher.

Taken together, the figures raise fresh doubts over the Eurozone’s growth prospects and may increase pressure on the European Central Bank (ECB) to remain supportive in the months ahead.

Looking to Thursday, the Pound Euro exchange rate is likely to be driven by the BoE’s interest rate decision and more importantly, the tone of its accompanying guidance.

With another 25bps cut widely expected, the market reaction will hinge on what the BoE signals about its intentions for the rest of the year.

Should officials express growing concern about the UK’s economic trajectory, particularly regarding employment, Sterling may weaken on expectations of a quicker pace of easing.

Ahead of the BoE, Germany’s latest industrial production print could also exert influence on EUR exchange rates. A contraction in output would likely stoke concerns about a broader slowdown in the Eurozone economy.

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TAGS: Pound Euro Forecasts