Pound-to-Euro Rises as UK Economy Leads G7 Growth Table

Modified: Tuesday, 30 June 2026 20:01 BST - Written by David Woodsmith

STORY LINK Pound-to-Euro Rises as UK Economy Leads G7 Growth Table

The Pound Euro (GBP/EUR) exchange rate ticked higher on Tuesday after the UK’s latest GDP figures confirmed that economic growth picked up at the beginning of the year.

At the time of writing, GBP/EUR was trading at €1.1611, around 0.2% higher on the day.

The Pound (GBP) edged higher against several peers on Tuesday after the UK’s final first-quarter GDP figures were released.

The figures confirmed that the UK economy expanded by 0.6% in the opening three months of 2026, putting Britain ahead of its G7 counterparts in terms of growth.

However, Sterling’s upside was capped by some less encouraging details. Growth in the final quarter of 2025 was revised down from 0.2% to 0.1%, while the economy shrank by 0.1% in April.

At the same time, a broadly positive market mood helped the increasingly risk-sensitive Pound find support against its safe-haven rivals.

The Euro (EUR) came under modest pressure on Tuesday, even as Germany published some stronger-than-expected data.

Retail sales in the Eurozone’s largest economy rose by 1.1% in May, defying forecasts for a 0.1% decline. Meanwhile, German unemployment unexpectedly fell by 1,000 in June.

However, the positive releases failed to give the common currency much support, as an upbeat market mood weighed on the comparatively safer Euro.

EUR investors may also have been reluctant to place too much emphasis on the figures ahead of Germany’s consumer price index release later in the session.

Near-Term GBP/EUR Forecast: Central Bank Commentary in Focus

Looking ahead, the Eurozone’s preliminary consumer price index for June could drive movement in the Euro. If inflation cools as expected, the common currency may struggle.

Focus will then shift to comments from central bank policymakers. Bank of England (BoE) Governor Andrew Bailey is due to speak on Wednesday afternoon, likely drawing attention from GBP investors.

If Bailey continues to sound cautious over the prospect of further interest rate rises, Sterling could slip.

Meanwhile, European Central Bank (ECB) President Christine Lagarde is also scheduled to speak. Should Lagarde repeat the hawkish tone she struck on Monday, the Euro could find fresh support.

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TAGS: Pound Euro Forecasts