Pound Euro Holds Firm

Modified: Tuesday, 14 July 2026 20:01 BST - Written by James Fuller

STORY LINK Pound Euro Holds Firm

The Pound Euro (GBP/EUR) exchange rate remained resilient on Tuesday, despite warnings from Bank of England (BoE) Governor Andrew Bailey over the UK’s sluggish economic growth.

At the time of writing, GBP/EUR was trading at €1.1731, sitting marginally higher across the day.

The Pound (GBP) was subdued on Tuesday as a range of competing influences left Sterling lacking a clear trend.

The currency came under some pressure following cautious comments from BoE Governor Andrew Bailey, who highlighted the UK economy’s extended period of weak growth over the past 16 years as the ‘big issue’ facing the country.

However, Sterling found some support from growing expectations that the BoE could raise interest rates, with the latest surge in energy prices renewing concerns over inflation.

The Pound also benefited from a reduction in political uncertainty after Labour leadership frontrunner Andy Burnham secured nominations from 349 Labour MPs on Monday night, preventing any rival candidate from challenging him.

The development added to the recent improvement in political sentiment, helping to provide some stability for GBP.

Meanwhile, the Euro (EUR) came under modest pressure on Tuesday after Germany’s latest wholesale price data revealed an unexpected 0.7% decline in June.

The weaker figures slightly tempered expectations for consumer price growth across the wider Eurozone, although the recent jump in energy prices has increased speculation that the European Central Bank (ECB) could lift interest rates again.

With these opposing forces at play, the single currency remained subdued.

Near-Term GBP/EUR Forecast: Eurozone Production Data in Focus

Looking ahead, the Eurozone’s latest industrial production figures are the only major data release scheduled for Wednesday. A forecast rise in output could offer some support to EUR, although the expected improvement is relatively small and may restrict any upside for the single currency.

Beyond the data, GBP/EUR may take direction from broader market movements.

The Euro could remain vulnerable due to its strong negative correlation with the US Dollar (USD). Should the US Dollar continue to benefit from a cautious market environment, the common currency may come under additional pressure.

Meanwhile, the Pound may retain support from the recent decline in UK political uncertainty, with Andy Burnham expected to become Labour leader on Friday before entering Number 10 on Monday.

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TAGS: Pound Euro Forecasts