Pound to Euro Outlook: GBP/EUR Rangebound as Markets Brace for ECB Rate Call

Modified: Wednesday, 10 September 2025 17:15 BST - Written by David Woodsmith

STORY LINK Pound to Euro Outlook: GBP/EUR Rangebound as Markets Brace for ECB Rate Call

The Pound Euro (GBP/EUR) exchange rate was trapped in a narrow range on Wednesday amid a lull in UK and Eurozone data.

At the time of writing, the GBP/EUR was trading at around €1.1562, virtually unchanged from Wednesday’s opening levels.

The Euro (EUR) traded without clear direction on Wednesday, with a quiet economic calendar offering little impetus for movement in mid-week trade.

Investors appeared reluctant to take strong positions on the single currency ahead of Thursday’s highly anticipated European Central Bank (ECB) interest rate decision.

This cautious atmosphere left EUR exchange rates subdued, while broader market dynamics added to the pressure.

A risk-on mood encouraged traders towards higher-risk assets, reducing demand for the Euro’s safety and limiting its ability to attract bids.

The Pound (GBP) traded on a steady footing through Wednesday’s European session, with the absence of notable UK data leaving movement largely dictated by market sentiment.

A broadly positive risk mood provided some support, allowing the risk-sensitive currency to hold its ground against traditional safe-haven peers.

However, Sterling did slip against currencies with a stronger link to risk appetite, leaving overall performance fairly balanced.

GBP/EUR Exchange Rate Forecast: ECB Interest Rate Meeting to Drive Movement

Thursday’s European session is likely to be dominated by the European Central Bank’s (ECB) latest interest rate decision, which is expected to steer movement in the Pound Euro (GBP/EUR) exchange rate.

Markets broadly expect that the ECB will keep rates unchanged at 2.15%. However, if policymakers strike a dovish tone in their forward guidance, the Euro could come under pressure, potentially giving GBP/EUR a lift.

For the Pound, the lack of fresh UK data on Thursday may leave investors already looking ahead to Friday’s key GDP release.

The report is forecast to show growth stagnating in July, with the index expected to fall from 0.4% to 0%.

Should this slowdown materialise, Sterling may struggle to end the week on solid ground.

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TAGS: Pound Euro Forecasts