Pound to Euro Holds Firm as Weak German Data Weighs on Euro

Modified: Thursday, 25 June 2026 20:01 BST - Written by Frank Davies

STORY LINK Pound to Euro Holds Firm as Weak German Data Weighs on Euro

The Pound Euro (GBP/EUR) exchange rate remained resilient on Thursday as underwhelming German data weighed on the common currency.

At the time of writing, GBP/EUR was trading at €1.1600, marginally higher on the day and still within touching distance of Wednesday’s ten-month high.

The Pound (GBP) drew modest support on Thursday as markets reacted positively to indications that Andy Burnham – the former Greater Manchester Mayor expected to succeed Keir Starmer as Prime Minister – could adopt a fiscally cautious stance.

Speaking to the BBC, Chancellor Rachel Reeves threw her support behind Burnham, arguing that he would adhere to the Treasury’s current fiscal rules.

Her comments helped ease concerns that Burnham, who is generally seen as more interventionist than Starmer, may pursue a looser approach to public spending. However, GBP investors remained watchful for further signals on his borrowing plans.

The Euro (EUR) came under pressure on Thursday after Germany’s latest consumer confidence figures fell short of expectations.

The data showed that household sentiment in the Eurozone’s largest economy improved only slightly ahead of July. The index rose from -29.7 to -29.2, missing forecasts for a stronger increase to -27.6.

The disappointing release weighed on EUR early in the European session. However, the single currency’s losses were limited by weakness in the US Dollar (USD), due to the pairing’s strong negative correlation.

Near-Term GBP/EUR Forecast: UK Politics to Steer the Pound?

Looking to Friday, the absence of notable UK or Eurozone data could leave both the Pound and the Euro trading on trends in the wider market.

For the Pound, attention may remain fixed on Westminster as markets continue to weigh up Andy Burnham’s likely approach to economic policy. Any fresh hints over his priorities could affect UK bond markets, potentially filtering through to Sterling.

Meanwhile, the Euro may be driven by its negative correlation with the US Dollar. Should USD give back some of its strong gains from earlier in the week, the common currency could find support.

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TAGS: Pound Euro Forecasts