Pound-to-Euro Ticks Up ahead of Trump-Zelensky Meet

Modified: Monday, 18 August 2025 16:00 BST - Written by David Woodsmith

STORY LINK Pound-to-Euro Ticks Up ahead of Trump-Zelensky Meet

The Pound to Euro exchange rate (GBP/EUR) firmed on Monday as markets turned positive ahead of Trump’s meeting with Zelensky.

At the time of writing, the GBP/EUR was trading at around €1.1595, up almost 0.2% from Monday’s opening levels.

The Euro (EUR) came under pressure at the start of the week, slipping against most of its major rivals despite the absence of fresh Eurozone data.

Risk-on sentiment dominated Monday’s trading session, weighing heavily on the single currency due to its status as a traditional safe-haven currency.

This left the Euro struggling to attract support as markets favoured riskier assets.

In addition, investors were reluctant to make strong moves on the Euro ahead of a key meeting between US President Donald Trump and Ukrainian President Volodymyr Zelensky.

After Trump’s discussions with Russian President Vladimir Putin on Friday, fears that he might press Zelensky to accept Russian terms to end the conflict further weighed on the single currency at the start of the week.


The absence of fresh UK economic data left the Pound (GBP) at the mercy of market mood at the start of the week, with Sterling trading broadly but without clear direction against its major peers.

As risk appetite picked up, GBP came under pressure against more risk-sensitive currencies.

However, the upbeat market tone also reduced demand for safe-haven assets, enabling the increasingly risk-sensitive Pound to hold steady against its traditionally safe-haven rivals such as the Euro.

GBP/EUR Forecast: CPI in the Spotlight

With little in the way of economic releases scheduled for Tuesday, attention is likely to turn to Wednesday’s European session, when both the UK and Eurozone publish their latest consumer price index (CPI) reports.

In the UK, July’s CPI is expected to show a slight uptick, with inflation forecast to rise from 3.6% to 3.7%.

Such a result could offer Sterling some support, potentially helping GBP/EUR exchange rates push higher following the release.


In contrast, the Eurozone’s reading is predicted to hold steady at 2%, exactly in line with the European Central Bank’s (ECB) target.

Stubborn inflation may revive speculation over future interest rate cuts, likely putting pressure on the Euro during mid-week trade.

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TAGS: Pound Euro Forecasts