Pound to Euro Hits Multi-Week Best

Modified: Thursday, 23 April 2026 21:31 BST - Written by David Woodsmith

STORY LINK Pound to Euro Hits Multi-Week Best

The Pound to Euro (GBP/EUR) exchange rate pushed higher on Thursday, with the single currency coming under pressure after weaker-than-expected Eurozone PMI data.

At the time of writing, GBP/EUR was trading near €1.1547, marking a modest uptick from the session’s opening levels.

The Euro (EUR) lost ground on Thursday following the release of the Eurozone’s latest PMI figures, which painted a downbeat picture of economic activity.

Flash estimates showed the bloc’s composite index slipping back into contraction in April, falling from 50.7 to 48.6, a steeper decline than anticipated and the weakest reading since late 2024.

The data highlighted the growing strain from elevated energy costs, which are weighing on demand, pushing up input prices, and dampening confidence among businesses.

For investors, the disappointing figures raise fresh doubts about the region’s growth outlook and complicate the policy path for the European Central Bank (ECB), as it attempts to balance stubborn inflation against a slowing economy.

The Pound (GBP) found support on Thursday after the UK’s own PMI data surprised to the upside.

Preliminary readings for April indicated that both manufacturing and services activity expanded at a faster pace than forecast, defying expectations of stagnation or decline.

Even so, gains in Sterling were somewhat restrained. Analysts noted that beneath the headline improvement, business confidence weakened and cost pressures, particularly in the services sector, increased sharply.

Near-Term GBP/EUR Forecast: UK Retail Sales in Focus

Looking ahead, the next potential catalyst for the Pound to Euro exchange rate will be the UK’s retail sales figures.

Forecasts suggest a modest rebound in March, with growth expected to recover from a contraction of -0.4% to around 0.2%. A stronger reading could provide some support for Sterling at the end of the week.

Meanwhile, attention for EUR traders will turn to Germany’s upcoming IFO business climate index. A weak reading, in line with the recent drop in economic sentiment, could leave the single currency on the back foot.

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TAGS: Pound Euro Forecasts