British Pound to Euro Holds €1.15, UK GDP Incoming

Modified: Wednesday, 13 August 2025 17:00 BST - Written by Frank Davies

STORY LINK British Pound to Euro Holds €1.15, UK GDP Incoming

The Pound to Euro exchange rate (GBP/EUR) held firm within a tight trading band on Wednesday, as a result of uncertainty ahead of a meeting between US President Donald Trump and Russian President Vladimir Putin later in the week

At the time of writing, GBP/EUR was hovering around €1.1572, virtually unchanged from the start of the session.

The Euro struggled to find direction on Wednesday, with investors reluctant to make bold moves ahead of Friday’s Trump-Putin Ukraine peace talks in Alaska.

Lingering doubts over whether any agreement reached could align with European priorities weighed on sentiment, as did worries about potential repercussions for regional stability.

Adding to the pressure on the single currency was persistent speculation that the European Central Bank (ECB) could deliver another interest rate cut before the end of 2025, with the larger-than-expected deterioration in German economic sentiment this month stoking bets for a December rate cut.

Sterling moved sideways in mid-week trade, as it struggled to maintain Tuesday's momentum.

Tuesday’s employment figures, while still signalling a cooling labour market, came in stronger than forecast, bolstering hawkish Bank of England (BoE) expectations and lifting the Pound against most major currencies.


However, Wednesday’s consolidation suggested that investors remain wary about the UK’s longer-term growth prospects and the fiscal challenges facing the government.

GBP/EUR Exchange Rate Forecast: UK GDP Data In Focus

Looking ahead, the UK’s latest GDP figures are likely to dominate movement in the Pound to Euro (GBP/EUR) exchange rate on Thursday.

Analysts forecast a sharp slowdown in growth, with output expected to rise by just 0.1% compared to 0.7% in the first quarter.

A result in line with forecasts could temper bullish BoE bets, while also intensifying speculation that the government will resort to tax hikes in the autumn to shore up public finances.

Meanwhile, the Eurozone will also publish its latest GDP estimate on Thursday, though unless the reading differs from the previous projection, the reaction in the Euro may be muted.

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TAGS: Pound Euro Forecasts