Pound-to-Euro Firm Despite Upbeat German Industrial Production

Modified: Monday, 8 September 2025 17:15 BST - Written by Frank Davies

STORY LINK Pound-to-Euro Firm Despite Upbeat German Industrial Production

The Pound to Euro (GBP/EUR) exchange rate was trapped in a narrow range on Monday following the release of Germany’s latest industrial production index.

At the time of writing, the GBP/EUR was trading at around €1.1530, virtually unchanged from Monday’s opening levels.

The Euro (EUR) held its ground on Monday, resisting downward pressure from risk-on sentiment despite its usual role as a safe-haven asset.

Support for the single currency came from upbeat German industrial production figures. July’s reading climbed to 1.3%, up from -0.1% previously and comfortably above forecasts of a 1% increase.

This stronger-than-expected result helped the Euro maintain stability through Monday’s European session, even as investors favoured riskier assets.

The Pound (GBP) traded without clear direction on Monday, as the absence of notable UK data left movement largely dictated by broader risk trends.

Sterling slipped against currencies more closely tied to risk appetite, reflecting its own growing sensitivity to market mood.

However, the day’s risk-on environment also enabled the Pound to hold steady, and in some cases gain ground, against traditional safe-haven peers.

With no major domestic releases to drive volatility, GBP’s overall performance at the start of the week remained fairly subdued.

GBP/EUR Forecast: UK Data to Drive Movement?

The Pound to Euro (GBP/EUR) exchange rate could face movement on Tuesday as attention turns to the UK’s BRC retail sales monitor.

The report is expected to highlight a slight slowdown in activity, with August’s index forecast to dip from 1.8% to 1.6%.

A softer reading may weigh on Sterling as the European session opens.

Meanwhile, the Eurozone’s economic calendar is quiet, leaving the single currency at the mercy of broader market sentiment.

If risk appetite remains upbeat, the Euro may struggle to attract support, potentially leaving EUR exchange rates on the defensive during Tuesday’s European trading session.

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TAGS: Pound Euro Forecasts