Pound to Euro Listless

Modified: Monday, 30 March 2026 18:01 BST - Written by David Woodsmith

STORY LINK Pound to Euro Listless

The Pound Euro (GBP/EUR) exchange rate wobbled on Monday as investors assessed a mixed set of economic releases from both Germany and the wider Eurozone.

At the time of writing, GBP/EUR hovered near €1.1515, having traded within a tight range throughout the session.

The Euro traded without a clear trajectory as investors weighed the latest batch of Eurozone economic releases.

Initial figures from Germany revealed a notable rise in inflation for March, with surging global energy prices driven by the Middle East conflict pushing costs higher in the Eurozone’s largest economy.

As Germany is often viewed as a proxy for wider Eurozone trends, the data bolstered expectations that the European Central Bank could move ahead with an interest rate hike in April.

However, any gains in the single currency proved limited after the Eurozone’s economic sentiment index dropped to its weakest level in six months. The decline reflected growing concerns that elevated inflation tied to US-Iran tensions could weigh on economic activity across the region in the near term.

The Pound struggled to find momentum at the beginning of the week as the UK economic calendar offered little in the way of meaningful releases.

In the absence of any key domestic drivers, Sterling drifted within a narrow range, leaving it largely influenced by broader market sentiment.

Short-Term GBP/EUR Forecast: Eurozone CPI in Focus

Attention for the Pound turns to the final reading of the UK’s fourth-quarter GDP. Should the data confirm that growth remained sluggish at just 0.1% at the end of 2025, Sterling may come under pressure. Any revision to the initial estimate could trigger a more pronounced reaction.

For the Euro, the spotlight will be on the Eurozone’s preliminary inflation figures for March.

Economists anticipate a sharp uptick in headline CPI, rising from 1.9% to 2.7%. Such an increase could reinforce expectations that the European Central Bank will raise interest rates at its April meeting and potentially provide support to the single currency.

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TAGS: Pound Euro Forecasts