Pound-to-Euro Forecast: Bank of England and Eurozone GDP up Next

Modified: Wednesday, 29 July 2026 11:16 BST - Written by Frank Davies

STORY LINK Pound-to-Euro Forecast: Bank of England and Eurozone GDP up Next

The Pound Euro (GBP/EUR) exchange rate inched higher on Tuesday, recovering slightly after falling to a three-week low, although the absence of fresh UK economic data kept Sterling's gains in check.

At the time of writing, GBP/EUR was trading at around €1.1691, up marginally from the day's opening levels.

The Pound (GBP) edged higher on Tuesday after slipping to multi-week lows against some counterparts at the start of the week. However, with no notable UK economic releases to guide trading, Sterling’s rebound struggled to gather momentum.

GBP came under pressure on Monday after falling global energy prices reduced expectations that the Bank of England (BoE) would adopt a more hawkish stance at Thursday’s policy announcement.

That said, Sterling appeared to have become oversold, encouraging some bargain hunting and allowing the currency to recover part of its earlier losses.

Meanwhile, these developments also prompted UK gilt yields to fall, reducing government borrowing costs and easing some of the pressure on Prime Minister Andy Burnham as he pursues ambitious plans to lower the cost of living. This may also have offered the Pound some support.

The Euro (EUR) was confined to a narrow range on Tuesday as a lack of fresh Eurozone economic data left the single currency without any meaningful direction.

At the same time, external influences offered little support. The US Dollar (USD), which typically shares an inverse relationship with the Euro, traded without a clear trend, leaving EUR to drift sideways.

Near-Term GBP/EUR Forecast: Calm Trading Before Thursday's Key Events?

Looking ahead, the absence of major UK and Eurozone economic releases on Wednesday could keep volatility in the Pound to Euro exchange rate to a minimum.

The GBP/EUR pairing may also remain rangebound as markets await a busy Thursday, with the Bank of England's latest interest rate decision and the Eurozone's preliminary second-quarter GDP figures both due for release.

As a result, Sterling and the single currency may struggle to find fresh direction during Wednesday's session, leaving the GBP/EUR exchange rate trading within a relatively tight range.

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TAGS: Pound Euro Forecasts