Pound Euro Climbs to Fresh One-Year Best Exchange Rate

Modified: Wednesday, 8 July 2026 21:31 BST - Written by Minesh Chaudhari

STORY LINK Pound Euro Climbs to Fresh One-Year Best Exchange Rate

The Pound Euro (GBP/EUR) exchange rate climbed to a new one-year high on Wednesday, despite a quiet session with no major data releases from either the UK or the Eurozone.

At the time of writing, GBP/EUR was trading around €1.1716, edging slightly higher on the day and remaining close to its strongest levels in more than 12 months.

The Pound (GBP) traded without a firm direction on Wednesday, with an empty UK economic calendar giving Sterling little to guide its movement.

Growing tensions between the US and Iran prompted some demand for safer currencies, which limited the appeal of the increasingly risk-sensitive Pound. At the same time, the currency continued to draw some support from the recent reduction in domestic political uncertainty.

Even so, GBP/EUR managed to edge higher, climbing to its strongest level in a year.

The Euro (EUR) also lacked clear momentum on Wednesday, with no notable Eurozone economic releases leaving the single currency to take its cues from broader market developments.

While the cautious tone across financial markets offered the traditionally safer Euro some support, its strong inverse relationship with the US Dollar (USD) limited any upside.

The safe-haven 'Greenback' strengthened as tensions in the Middle East intensified. After overnight exchanges between the US and Iran on Tuesday, US President Donald Trump warned that the US military would ‘hit [Iran] hard tonight’.

As a result, the Euro remained on the back foot against the Pound.

Near-Term GBP/EUR Forecast: ECB Minutes in Focus

Looking ahead, Thursday’s session begins with the release of Germany’s latest trade balance figures.

Markets expect the trade surplus in the Eurozone’s largest economy to have increased slightly in May. However, this is forecast to reflect a notable decline in imports rather than stronger export activity, with export growth expected to come in at -0.3%. This could leave the Euro with limited support.

Later in the day, attention will turn to the European Central Bank (ECB) meeting minutes. Any indication that policymakers are still considering further interest rate increases could provide a boost for the Euro.

Meanwhile, Sterling traders will be watching the opening of Labour Party leadership nominations on Thursday. The Pound may find some support if no additional MPs enter the contest to challenge Andy Burnham.

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TAGS: Pound Euro Forecasts