Pound to Euro Rate Today: GBP Gains on Risk Appetite Boost

Modified: Tuesday, 16 September 2025 07:07 BST - Written by Frank Davies

STORY LINK Pound to Euro Rate Today: GBP Gains on Risk Appetite Boost

The Pound Euro (GBP/EUR) exchange rate firmed on Monday, as the currency pair was underpinned by an upbeat market mood.

At the time of writing, the GBP/EUR was trading at around €1.1571, up almost 0.2% from Monday’s opening levels.

The Pound (GBP) began the week on solid ground, edging higher against several rivals on Monday despite the absence of fresh UK data.

As risk sentiment continued to shape Sterling’s movements, the currency advanced against safe-haven peers while holding relatively steady against other risk-sensitive currencies.

The day’s positive market mood provided some early support for GBP, though traders remained hesitant to adopt aggressive positions ahead of key UK economic releases due later in the week.

In contrast, the Euro (EUR) lost ground at the start of the week, slipping against most major peers on Monday.

The single currency’s safe-haven appeal worked against it in the day’s upbeat market mood, as investors favoured riskier assets instead.

With no notable Eurozone data releases to provide direction, EUR exchange rates remained under pressure throughout Monday’s European session.

GBP/EUR Exchange Rate Forecast: UK and Eurozone Releases to Drive Movement

Looking ahead to Tuesday’s European session, trading in the Pound Euro (GBP/EUR) exchange rate is likely to be shaped by two high-profile data releases, one from the UK and one from the Eurozone.

For the Pound, attention will turn to the publication of the UK’s latest labour market statistics for August. Unemployment is expected to hold at a four-year high, underscoring ongoing weakness in the jobs market.

However, average earnings excluding bonuses are forecast to rise.

This contrast may make it difficult for Sterling to establish a decisive trajectory, leaving GBP trading in a relatively narrow range as markets digest the figures.

On the Euro side, focus will be on the release of Germany’s ZEW economic sentiment index for September.

Markets expect the reading to slump from 34.7 down to 25, signalling a sharp deterioration in optimism surrounding the Eurozone’s largest economy.

Such a decline would raise fresh concerns about the bloc’s growth outlook, particularly at a time when confidence is already fragile.

If the data prints in line with forecasts, the Euro could struggle to attract support, leaving the common currency exposed to further downside pressure.

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TAGS: Pound Euro Forecasts