Pound to Euro Rate Flat

Modified: Tuesday, 7 April 2026 18:01 BST - Written by David Woodsmith

STORY LINK Pound to Euro Rate Flat

The Pound Euro (GBP/EUR) exchange rate moved within a tight range on Tuesday as investors digested the latest services PMI data from both the UK and the Eurozone.

At the time of writing, GBP/EUR was trading at €1.1473, having drifted sideways throughout the session.

The Pound (GBP) struggled to find a clear trajectory after the release of the UK’s final services PMI for March.

The index was revised down from 51.2 to 50.5, marking the weakest pace of expansion in almost a year and signalling that activity is nearing stagnation.

Despite the softer headline figure, Sterling found some support from evidence of intensifying price pressures. This reinforced expectations that the Bank of England may continue tightening policy, helping to limit GBP’s losses.

The Euro (EUR) traded in a mixed manner as investors assessed the Eurozone’s latest services PMI figures.

The final reading revealed activity slowed sharply in March, with the index slipping from 51.9 to 50.2, a ten month low, though slightly above the preliminary estimate of 50.1.

As with the UK data, the report also highlighted strengthening price pressures across the bloc. This helped to underpin expectations of further policy tightening from the European Central Bank, offering some support to the single currency.

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

Germany’s latest factory orders release will be in focus. If April’s figures show a rebound, the Euro could find some modest early support.

Attention will then turn to the Eurozone’s retail sales data. The Euro may come under pressure if forecasts prove accurate, with sales expected to have declined by 0.2% in February, highlighting ongoing weakness in consumer demand.

The Pound may struggle for direction amid a lack of notable UK data, potentially leaving Sterling driven by external factors.

Developments in the Middle East are also likely to drive volatility. With tensions still elevated following the passing of a US deadline for Iran to reopen the Strait of Hormuz, shifts in market sentiment could result in choppy trading for GBP/EUR.

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TAGS: Pound Euro Forecasts