Pound-to-Euro Subdued as Markets Await Key PMI Data

Modified: Monday, 22 September 2025 23:15 BST - Written by David Woodsmith

STORY LINK Pound-to-Euro Subdued as Markets Await Key PMI Data

The Pound Euro (GBP/EUR) exchange rate was subdued on Monday as a cautious market mood left both currencies struggling for clear direction.

At the time of writing, GBP/EUR was trading at €1.1472, virtually unchanged from Monday’s opening levels.

The Euro (EUR) gained modest support as investors favoured safer assets, helping the common currency climb against risk-sensitive rivals and broadly firm across the board.

However, upside momentum appeared limited, with markets bracing for upcoming Eurozone data releases.

September’s flash consumer confidence reading was expected to show continued weakness, tempering appetite for the single currency.

The Pound (GBP) also traded steadily to start the week, despite the absence of fresh UK data.

Pound Sterling found some modest support from the same cautious tone that benefited the Euro, posting gains against several risk-sensitive peers while holding firm against traditional safe havens.

GBP/EUR Forecasts: PMIs in Focus

Looking ahead to Tuesday’s session, the Pound Euro (GBP/EUR) exchange rate is set to be driven by the release of September’s flash PMI data from both the UK and the Eurozone.

In the UK, the services PMI is expected to ease from 54.2 to 53.6. While this would still leave the index comfortably in growth territory, any slowdown may fuel concerns over the resilience of the UK’s services sector.

Meanwhile, investors will be watching closely as the Eurozone publishes its own flash PMIs. Consensus points to broadly stable readings, though Germany’s weak performance remains a source of concern. Any unexpected softness in the figures could weigh on sentiment towards the Euro and limit its ability to hold gains through the session.

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TAGS: Pound Dollar Forecasts