Pound to Euro Rate Today: GBP Holds 1.15 as French Turmoil Caps EUR Gains

Modified: Tuesday, 7 October 2025 21:00 BST - Written by Frank Davies

STORY LINK Pound to Euro Rate Today: GBP Holds 1.15 as French Turmoil Caps EUR Gains

The Pound to Euro exchange rate (GBP/EUR) remained largely unchanged on Tuesday, as investors monitored political developments in France.

At the time of writing, GBP/EUR was holding close to €1.1509, almost unchanged from Tuesday’s opening levels.

The Euro (EUR) found some tentative support on Tuesday as President Emmanuel Macron made a final attempt to prevent yet another government crisis.

Following the surprise resignation of Prime Minister Sébastien Lecornu on Monday, less than a month after taking office, Macron urged him to remain in post for an additional 48 hours to attempt to secure an agreement on a new political framework for stability.

Although expectations for success remain low, even the faint possibility of avoiding a snap election helped provide modest support for the Euro.

That said, EUR gains were capped following a disappointing set of German factory orders figures.

Data from Destatis revealed that factory orders decreased by 0.8% in August, falling short of forecasts for a 1.4% increase.

While this marked an improvement from July’s 2.7% fall, the figures underscored persistent weakness across Germany’s industrial base, a continuing concern for the broader Eurozone economy.

The Pound (GBP) struggled to catch bids on Tuesday amid a lack of major UK data releases to provide direction.

With no new economic reports to shape expectations on the Bank of England’s (BoE) next move, investors remained cautious, preferring to avoid large bets on Sterling.

Speculation surrounding Chancellor Rachel Reeves’s upcoming budget also weighed on sentiment, as markets assessed the potential impact of likely tax increases on growth and consumer confidence.

Looking ahead, the Pound Euro exchange rate could edge higher midweek if fresh German data continues to underwhelm.

Forecasts suggest that August’s industrial production report will show renewed contraction, reinforcing concerns over the fragility of Germany’s manufacturing sector and adding to headwinds for the Euro.

At the same time, political uncertainty in France is expected to remain a key driver of EUR sentiment, with further instability likely to push the single currency lower.

Meanwhile, with no major UK releases on the horizon, the Pound may continue to tread water through Wednesday, moving largely in response to broader market trends.

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TAGS: Pound Euro Forecasts