Pound to Euro Resilient Despite Modest Growth Data

Modified: Thursday, 16 October 2025 23:15 BST - Written by Frank Davies

STORY LINK Pound to Euro Resilient Despite Modest Growth Data

The Pound to Euro exchange rate (GBP/EUR) was muted on Thursday as both the UK and Eurozone published some high-impact data releases.

At the time of writing, the GBP/EUR was trading at around €1.1524, virtually unchanged from Thursday’s opening levels.

The Pound (GBP) held firm against most of its major peers on Thursday, following the release of the UK’s latest GDP figures.

August’s reading showed only a marginal 0.1% increase, in line with market expectations, while July’s figure was revised slightly lower to -0.1%.

Although the data served to highlight the UK’s weakening economy, its alignment with forecasts meant there was little immediate impact on Sterling.

Throughout Thursday’s European session, GBP exchange rates remained relatively stable, with the Pound demonstrating resilience against the majority of its key counterparts despite the subdued report.

The Euro (EUR) experienced a choppy session on Thursday, trading in a wide range against most of its peers following the release of the Eurozone’s latest balance of trade figures.

In August, the bloc recorded a significantly larger-than-expected trade deficit, with the reading plunging from €12.7 billion to just €1 billion, falling short of market expectations of a decline to €6.9 billion.

This marked the lowest level in seven months and weighed on the single currency, leaving the Euro struggling to find upward momentum against the majority of its counterparts during Thursday’s European trading session.

GBP/EUR Forecast: Eurozone Inflation in the Spotlight

Looking ahead to Friday’s European session, the Pound Euro (GBP/EUR) exchange rate is likely to be influenced by the release of the Eurozone’s latest consumer price index (CPI).

For September, both headline and core inflation are expected to remain elevated, with core inflation forecast to print at 2.3% and headline inflation at 2.2%.

Should the data meet expectations, it is likely to provide support for the Euro as the week comes to a close.

On the UK side, the economic calendar will be quiet, leaving Sterling largely without domestic drivers.

Investor attention is expected to focus on a scheduled speech from Bank of England (BoE) Chief Economist Huw Pill.

If Pill signals concerns about the UK economy or suggests a more cautious monetary policy approach, GBP exchange rates could struggle to gain traction, potentially leaving the Pound vulnerable during Friday’s European trading session.

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TAGS: Pound Euro Forecasts