Pound-to-Euro Flat as EUR Tracks USD Recovery

Modified: Monday, 10 August 2026 20:01 BST - Written by David Woodsmith

STORY LINK Pound-to-Euro Flat as EUR Tracks USD Recovery

The Pound to Euro (GBP/EUR) exchange rate was confined to a narrow range at the beginning of the week as a lack of notable economic releases left investors on the sidelines.

At the time of writing, the GBP/EUR exchange rate was trading at around €1.1680, largely unchanged from Monday’s opening levels.

The Euro (EUR) struggled to attract support on Monday as an empty Eurozone economic calendar offered little fresh impetus for the single currency.

Momentum was also constrained by a recovery in the US Dollar (USD), which steadied after tumbling in the wake of Friday's weaker-than-expected US payrolls report.

The disappointing employment figures had initially lifted the Euro thanks to its strong inverse relationship with the ‘Greenback’.

However, renewed uncertainty surrounding negotiations in the Middle East helped the US Dollar regain some lost ground, while higher European gas prices also weighed on sentiment towards the Euro.

The Pound (GBP) lacked a clear direction on Monday as the continued absence of UK economic data kept trading conditions subdued.

Sterling also found little support from the bond market, with benchmark 10-year gilt yields holding broadly steady below the 5% mark at around 4.9%.

Meanwhile, markets paid little attention to Andy Burnham's latest cost-of-living announcement, including proposals to tackle subscription traps and misleading pricing practices, leaving the Pound without a meaningful domestic catalyst.

Near-Term GBP/EUR Forecast: GDP Figures to Provide Fresh Direction?

Looking ahead, a continued shortage of high-impact UK and Eurozone data may keep the Pound to Euro exchange rate trapped in a narrow range through the first half of the week.

Attention will then turn to Thursday's UK GDP release, with Sterling likely to benefit if second-quarter growth figures indicate the economy maintained a solid pace of expansion, even if growth eased slightly from the previous quarter.

Meanwhile, the Eurozone's latest industrial production figures could weigh on the Euro if they reveal manufacturing activity lost momentum in June.

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TAGS: Pound Euro Forecasts