Pound to Euro: Mixed Drivers Leave GBP/EUR Muted Near €1.146

Modified: Monday, 29 September 2025 23:15 BST - Written by David Woodsmith

STORY LINK Pound to Euro: Mixed Drivers Leave GBP/EUR Muted Near €1.146

The Pound to Euro (GBP/EUR) exchange rate held steady on Monday despite stronger-than-expected Eurozone sentiment data.

At the time of writing, GBP/EUR was trading at €1.1463, little changed from the session open.

The Euro (EUR) stayed subdued even after September’s economic sentiment index ticked up to 95.5, beating forecasts for a fall to 95.2. The modest improvement highlighted slightly stronger confidence across the bloc, but it failed to generate meaningful demand for the single currency.

Broader risk appetite encouraged flows into risk-sensitive currencies, leaving the Euro, often viewed as a defensive option, on the back foot.

The Pound (GBP) fluctuated in a broad range amid a lack of fresh UK data.

Sterling took some support from the upbeat market mood, edging higher against safe-haven peers.

However, its risk-sensitive profile meant gains were limited against other pro-cyclical currencies, leaving GBP performance mixed overall.

GBP/EUR Forecasts: German Data in the Spotlight

Looking ahead to Tuesday, Germany will release a series of important indicators, including August retail sales, unemployment data, and the September inflation print.

Retail sales are expected to rebound from -1.5% to 0.6%, while unemployment is forecast to hold at 6.3%, its highest since 2020. Inflation is projected to edge up from 2.2% to 2.3%.

If realised, stronger consumer activity and slightly higher price pressures could lend the Euro support, though lingering labour market weakness may limit gains.

For the Pound, a quiet UK calendar puts the focus on Bank of England speakers. Any hawkish signals could offer Sterling a lift as the week unfolds.

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TAGS: Pound Euro Forecasts