Pound-to-Euro Supported by Risk Mood But Gains Capped

Modified: Thursday, 2 October 2025 22:30 BST - Written by David Woodsmith

STORY LINK Pound-to-Euro Supported by Risk Mood But Gains Capped

The Pound to Euro (GBP/EUR) exchange rate remained unchanged on Thursday despite the release of some lacklustre data from the bloc.

At the time of writing, the GBP/EUR was trading at around €1.1483, virtually unchanged from Thursday’s opening levels.

The Euro (EUR) remained relatively steady during Thursday’s European session, despite the release of some underwhelming Eurozone data.

August’s unemployment rate rose from 6.2% to 6.3%, yet the increase failed to significantly weigh on the single currency.

Meanwhile, a slightly positive market mood, which would typically reduce demand for safe-haven currencies like the Euro, also had little impact on its performance.

The Euro’s resilience was supported by a weakening US Dollar (USD), with the negative correlation between the two currencies helping the common currency maintain its footing throughout Thursday’s trading session.

The Pound (GBP) held firm against most of its major peers on Thursday, despite the lack of any notable UK economic data releases.

Sterling drew some modest support from the upbeat market sentiment, with its risk-sensitive nature allowing it to edge higher against traditional safe-haven currencies.

However, this same dynamic left the Pound struggling to compete with more risk-driven rivals, limiting its overall gains.

With no domestic catalysts to drive momentum, GBP exchange rates largely drifted through Thursday’s European session, leaving the currency unable to mount a more sustained advance.

GBP/EUR Forecasts: UK and Eurozone Data in the Spotlight

Looking ahead to Friday’s European session, the Pound Euro (GBP/EUR) exchange rate is likely to be influenced by a slew of key data releases from both the Eurozone and the UK.

For the Euro, investors will be watching the bloc’s latest services PMI and August’s producer price index (PPI).

The services reading is expected to show a slight improvement, but with PPI forecast to decline once again, the mixed signals could dampen overall confidence in the single currency and keep EUR gains in check.

On the UK side, attention will turn to the finalised services PMI for September.

The index is projected to confirm a slowdown in activity across the country’s crucial services sector, which could weigh heavily on sentiment towards Sterling.

Should the reading print as expected, GBP exchange rates may struggle to find direction and could end the week under pressure.

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TAGS: Pound Euro Forecasts