Pound-to-Euro Steady at 1.155 as Ukraine Peace Talks Loom

Modified: Monday, 11 August 2025 16:47 BST - Written by David Woodsmith

STORY LINK Pound-to-Euro Steady at 1.155 as Ukraine Peace Talks Loom

The British Pound to Euro (GBP/EUR) exchange rate remained quiet on Monday, as a lack of data and uncertainty ahead of the Ukraine peace talks kept the pairing within a narrow range.

At the time of writing, GBP/EUR was trading at €1.1555, marginally up from the start of the European trading session.

Movement in the Euro (EUR) was uncertain on Monday, amid cautious optimism over renewed peace discussions regarding Ukraine.

US President Donald Trump and Russian President Vladimir Putin are scheduled to meet in Alaska on Friday to explore potential peace agreements. While anticipation ahead of the coming negotiations lifted EUR sentiment slightly, scepticism remains high over whether the talks will produce any substantive breakthroughs.

European officials have warned Washington against making concessions to Moscow, particularly over territory seized by force. They have also stressed the importance of ensuring Ukraine has a seat at the negotiating table.

The Pound (GBP) began the week with modest gains, underpinned by the lasting impact of last week’s Bank of England (BoE) policy decision.

A notably hawkish split among policymakers has prompted investors to reassess expectations for the timing and scale of future interest rate cuts, with this sentiment carrying over into Monday’s trade.


An improving market mood also offered a lift to the increasingly risk-sensitive Pound. However, the absence of fresh UK economic data and the anticipation of key events later in the week kept gains in check, leaving GBP trading broadly flat against many major currencies, while advancing against weaker counterparts.

The Pound to Euro exchange rate could see notable movement on Tuesday as the UK’s latest labour market report takes centre stage – a key factor for the Bank of England’s policy outlook.

Analysts anticipate that unemployment and wage growth (excluding bonuses) will hold steady in the three months to June, a sign that the slowdown in the jobs market may be levelling off. Such an outcome could ease expectations for further BoE rate cuts, lending support to Sterling.

Conversely, evidence of continued weakness could weigh on the Pound. Markets are braced for HMRC payroll numbers to show a drop in July, with any shortfall in wage growth or a rise in unemployment likely to dampen sentiment.

Later in the session, attention shifts to Germany’s ZEW economic sentiment index. Forecasts indicate a decline in August, and if confirmed, this could put fresh pressure on the Euro.

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TAGS: Pound Euro Forecasts