Pound to Euro Rangebound

Modified: Monday, 27 April 2026 20:56 BST - Written by James Fuller

STORY LINK Pound to Euro Rangebound

The Pound to Euro (GBP/EUR) exchange rate struggled to find direction at the start of the week, with investors remaining focused on unfolding events in the Middle East.

At the time of writing, GBP/EUR was hovering around €1.1540, showing little movement from Monday’s opening levels.

The Euro (EUR) edged higher on Monday, benefiting from a pullback in the US Dollar (USD) as improving risk sentiment reduced demand for traditional safe-haven assets.

Reports that Iran may be preparing a fresh proposal aimed at reopening the Strait of Hormuz lifted market confidence early in the session, prompting investors to rotate away from the US Dollar.

That said, gains in the single currency were tempered by disappointing domestic data. Germany’s latest consumer confidence figures revealed sentiment has fallen to its weakest level in three years, highlighting the strain higher energy costs are placing on Europe’s largest economy.

The Pound (GBP) remained on the back foot through Monday’s trading session following the release of the Confederation of British Industry’s latest retail survey.

The distributive trades index for April dropped sharply, sliding from –52 to a record low of –68, far worse than forecasts for a modest improvement.

Despite the scale of the decline, the impact on Sterling was relatively contained, with broader market sentiment continuing to play a more dominant role in shaping price action.

Short-Term GBP/EUR Forecast: Central Bank Guidance in Focus

Looking ahead, the Pound to Euro exchange rate may remain confined to a narrow range in the near term, as investors await the latest policy decisions from the Bank of England (BoE) and the European Central Bank (ECB).

While both central banks are widely expected to keep interest rates unchanged, attention will centre on their forward guidance.

If the BoE adopts a more cautious tone following recent volatility, it could weigh on Sterling. Meanwhile, any indication from the ECB that it is leaning towards tighter policy in response to persistent inflationary pressures could provide support to the Euro.

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TAGS: Pound Euro Forecasts