Pound to Euro Holds Ground

Modified: Wednesday, 29 April 2026 20:01 BST - Written by Ben Hughes

STORY LINK Pound to Euro Holds Ground

The Pound Euro (GBP/EUR) exchange rate traded within a tight range on Wednesday, as markets remained cautious ahead of key interest rate decisions from the Bank of England (BoE) and European Central Bank (ECB).

At the time of writing, GBP/EUR was holding around €1.1541, showing little meaningful movement on the day.

The Pound (GBP) traded in a narrow range on Wednesday, with limited economic data and a cautious mood among investors ahead of the Bank of England interest rate announcement on Thursday keeping movement subdued.

Sterling also found some stability after the previous day’s political uncertainty. Prime Minister Keir Starmer managed to quell a potential Labour revolt linked to demands for an investigation into whether he misled Parliament in relation to the Peter Mandelson controversy.

UK government bond yields, which had jumped sharply on Tuesday, settled on Wednesday. This stabilisation helped steady the Pound.

The Euro (EUR) showed resilience on Wednesday, largely overlooking disappointing Eurozone data as attention remained fixed on the European Central Bank’s upcoming policy decision.

Data released during the session showed the bloc’s economic sentiment index fell sharply from 96.2 in March to 93 in April. This marked its weakest reading since November 2020 and came in well below expectations for a smaller drop to 95.2, as concerns over the economic fallout from the Iran conflict dented confidence.

Despite the downbeat figures, the single currency saw limited reaction. With the ECB’s interest rate announcement due on Thursday, investors appeared reluctant to take strong positions, leaving the Euro relatively steady.

Near-Term GBP/EUR Forecast: Focus Turns to BoE and ECB Decisions

Looking ahead, Thursday is shaping up to be a key session for the Pound Euro exchange rate, with a raft of major releases including Eurozone inflation and GDP figures, alongside interest rate decisions from both the Bank of England and the European Central Bank.

An anticipated uptick in Eurozone inflation for April may offer some early support to the Euro, although a weak GDP reading could temper gains by highlighting underlying economic fragility.

Attention will then turn to the ECB’s policy announcement later in the day. While no immediate change in interest rates is expected, any forward guidance hinting at future tightening could bolster the single currency.

For the Pound, the BoE’s decision will be equally important. Should policymakers strike a more cautious tone compared to March – particularly regarding the need for further rate hikes – Sterling could come under renewed pressure.

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TAGS: Pound Euro Forecasts