Pound-to-Euro "Directionless" in Wake of Trump-Zelensky Talks

Modified: Tuesday, 19 August 2025 22:00 BST - Written by Frank Davies

STORY LINK Pound-to-Euro "Directionless" in Wake of Trump-Zelensky Talks

The Pound to Euro exchange rate (GBP/EUR) was rangebound on Tuesday following Donald Trump’s meeting with Volodymyr Zelensky on Monday.

At the time of writing, the GBP/EUR was trading at around €1.1577, virtually unchanged from Tuesday’s opening levels.

The Euro (EUR) advanced at the start of Tuesday’s European session, gaining ground against its major peers despite the absence of fresh economic data.

Support for the single currency came in the wake of Monday’s meeting between US President Donald Trump and Ukrainian President Volodymyr Zelensky.

Washington’s pledge to reinforce security was interpreted as a step toward peace, providing a boost for the Euro through Tuesday’s trade.

At the same time, a cautious market mood encouraged demand for safe-haven assets, with the Euro benefitting from its safe-haven status.

The Pound (GBP) remained directionless on Tuesday, with a quiet UK economic calendar leaving Sterling at the mercy of broader market mood.

During the day’s risk-averse trading, the increasingly risky Pound slipped against traditional safe-haven currencies.

However, this shift in tone also allowed GBP to edge higher versus its more risk-sensitive counterparts.

With no domestic data to guide investors, Sterling ultimately delivered a mixed performance, fluctuating against most major peers throughout Tuesday’s session.

GBP/EUR Forecast: Inflation Data in Focus

Mid-week trading could see renewed movement in the Pound Euro (GBP/EUR) exchange rate as markets shift focus to fresh inflation updates from both the UK and the Eurozone.

For Britain, July’s consumer price index (CPI) is projected to show a modest increase, with inflation expected to edge up from 3.6% to 3.7%. Should the figures match forecasts, Sterling may find some upward momentum in response.

Across the channel, the Eurozone’s CPI is expected to remain unchanged at 2%, exactly in line with the European Central Bank’s (ECB) target.

However, a static reading is likely to do little to ease expectations of upcoming rate cuts, which could weigh on the Euro throughout Wednesday’s European trading session.

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TAGS: Pound Euro Forecasts