Pound to Euro Rate Today: GBP/EUR Flat After UK CPI

Modified: Wednesday, 17 September 2025 18:04 BST - Written by David Woodsmith

STORY LINK Pound to Euro Rate Today: GBP/EUR Flat After UK CPI

The Pound Euro (GBP/EUR) exchange rate traded slightly higher on Wednesday as the UK published its latest inflation data for August.

At the time of writing, the GBP/EUR was trading at around €1.1517, virtually flat from Wednesday’s opening levels.

The Pound (GBP) held its ground against most major peers after the release of the UK’s latest consumer price index (CPI).

Headline CPI matched forecasts at 3.8%, while core inflation eased slightly from 3.8% to 3.6%. The data highlighted the persistence of above-target price pressures, offering Sterling some support ahead of the Bank of England’s (BoE) interest rate decision on Thursday.

With inflation still proving sticky, the report did little to bolster expectations for near-term rate cuts. As a result, GBP exchange rates found modest support throughout Wednesday’s European session.

The Euro (EUR) was broadly directionless on Wednesday, holding steady against some peers but slipping against others.

With no major Eurozone data releases to provide direction, the single currency lacked clear momentum and struggled to attract support. A speech from European Central Bank (ECB) President Christine Lagarde offered little reprieve, as she avoided addressing monetary policy. In the absence of fresh signals, EUR exchange rates were left to drift through mid-week trade.

Looking to Thursday’s European session, the Pound Euro (GBP/EUR) exchange rate is set to be guided by the Bank of England’s (BoE) latest interest rate decision.

The BoE is widely forecast to keep rates unchanged at 4.00%, a move that could lend Sterling some stability in the latter part of the week. Should policymakers strike a hawkish tone in their commentary, GBP may gain additional traction against its peers.

For the Euro, attention will turn to another speech from European Central Bank President Christine Lagarde. If she chooses to address the bloc’s monetary policy outlook, her remarks could inject fresh volatility into EUR exchange rates as the week unfolds.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Pound Euro Forecasts