Pound to Euro Holds Near Two-Week Best Exchange Rate

Modified: Tuesday, 11 August 2026 20:01 BST - Written by David Woodsmith

STORY LINK Pound to Euro Holds Near Two-Week Best Exchange Rate

The Pound Euro (GBP/EUR) exchange rate remained close to a two-week high on Tuesday, with traders largely holding fire ahead of a series of economic releases later in the week.

At the time of writing, GBP/EUR was trading at €1.1701, little changed from the start of the day.

The Pound (GBP) traded largely flat on Tuesday, with Sterling holding its position as the UK’s economic calendar offered little in the way of market-moving releases.

With no obvious domestic catalyst to drive the currency, GBP lacked a clear direction. However, expectations that the Bank of England (BoE) could raise interest rates before the end of the year helped the Pound fend off losses.

UK government bond yields – a key gauge of interest rate expectations – climbed above 5% on Tuesday, as renewed uncertainty in the Middle East triggered another sharp rise in oil prices.

The Euro (EUR) remained close to a two-week low against the Pound on Tuesday, as a quiet Eurozone data calendar offered little support for a recovery.

The single currency also came under pressure from its strong negative correlation with the US Dollar (USD), which edged higher during the session.

However, the Euro managed to hold its ground against GBP and avoid further losses.

Near-Term GBP/EUR Forecast: German Inflation Could Give Euro a Lift?

Looking ahead, Germany’s final inflation figures for July are the only major release scheduled for Wednesday. Should the data confirm that inflation accelerated in the Eurozone’s largest economy last month, the Euro could find some support.

Elsewhere, developments beyond the UK and Eurozone could also shape the GBP/EUR exchange rate. The Euro’s strong negative correlation with the US Dollar means that a weaker USD following Wednesday’s US inflation figures could give the single currency a boost.

For Sterling, the absence of UK data may leave the Pound lacking a clear catalyst, with GBP markets instead looking towards Thursday’s GDP figures for fresh direction.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Pound Euro Forecasts