Pound-to-Euro Steady Ahead of Lagarde Speech, German CPI

Modified: Monday, 29 June 2026 20:01 BST - Written by David Woodsmith

STORY LINK Pound-to-Euro Steady Ahead of Lagarde Speech, German CPI

The Pound to Euro (GBP/EUR) exchange rate struggled to find momentum on Monday as investors turned their attention to the European Central Bank’s (ECB) annual Sintra Forum.

At the time of writing, GBP/EUR was trading around €1.1591, almost unchanged from the opening levels of the session.

The Euro (EUR) lacked clear direction at the start of the week as investors awaited the opening address from European Central Bank President Christine Lagarde at the ECB’s annual Forum on Central Banking in Sintra.

Following the ECB’s latest interest rate increase earlier this month, markets are now looking for clues as to whether policymakers believe additional tightening will be required later in the year.

Lagarde has recently stressed that future monetary policy decisions will be driven by incoming economic data rather than a predetermined path, despite inflation remaining above the central bank’s target.

With traders expecting a similarly measured message from the ECB President, many opted to remain on the sidelines ahead of her scheduled speech at 18:30 BST.

The Pound (GBP) also traded in a confined range on Monday as Andy Burnham delivered his first major address since announcing his campaign to succeed Keir Starmer as Prime Minister.

Speaking in Manchester, Burnham focused heavily on plans to expand regional powers and boost economic growth across all parts of the UK through greater devolution.

However, the speech offered relatively few concrete policy details, but was still enough to overshadow remarks from Bank of England Chief Economist Huw Pill, who reiterated that policymakers must remain vigilant against persistent inflationary pressures while price growth continues to exceed the BoE's 2% objective.

Near-Term GBP/EUR Forecast: German Inflation Data in the Spotlight

Attention now turns to Tuesday's economic calendar, with Germany's latest inflation figures expected to play a key role in shaping movement in the Pound to Euro (GBP/EUR) exchange rate.

Economists forecast that June's preliminary consumer price index will show inflation easing from 2.6% to 2.5%, helped by lower energy prices following the reopening of the Strait of Hormuz.

Should the data reinforce expectations that inflationary pressures across the Eurozone are continuing to fade, investors may further scale back expectations for additional ECB interest rate increases, potentially weighing on the single currency.

Meanwhile, the UK will release its final estimate for first-quarter GDP. Confirmation that the economy expanded by 0.6% could provide Sterling with modest support if it reassures investors over the resilience of UK growth.

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TAGS: Pound Euro Forecasts