Pound to Euro Today: GBP Higher as Eurozone Sentiment Disappoints

Modified: Tuesday, 29 September 2026 20:01 BST - Written by David Woodsmith

STORY LINK Pound to Euro Today: GBP Higher as Eurozone Sentiment Disappoints

The Pound Euro (GBP/EUR) exchange rate managed a modest rise on Tuesday amid disappointing Eurozone data, although the absence of fresh UK data kept gains in check.

At the time of writing, GBP/EUR was trading at €1.1663, marking a marginal increase on the day.

The Pound (GBP) traded without a clear sense of direction on Tuesday, with a quiet UK economic calendar offering little in the way of fresh impetus for Sterling.

Elsewhere, developments in the UK provided mixed signals for the currency.

Average diesel prices climbed to a new record high, strengthening expectations that the Bank of England (BoE) could raise interest rates, while at the same time adding to concerns over the UK’s cost-of-living pressures.

The Labour Party Conference also left GBP trading cautiously.

Speculation centred on proposals for greater public control of energy and the potential implications for other utilities, alongside questions over how a national care service, which could form part of Labour’s manifesto at the next general election, would be funded.

The Euro (EUR) edged lower on Tuesday, with the single currency coming under pressure as the US Dollar (USD) strengthened, reflecting their typically strong negative correlation.

Fresh Eurozone data offered little relief for the Euro.

The bloc’s economic sentiment index unexpectedly fell from 98.4 to 97.9 in September, missing expectations for a rise to 99.

It marked the first decline since April and brought a four-month run of improving sentiment to an end.

Near-Term GBP/EUR Forecast: German Data in Focus

Looking ahead, Wednesday’s calendar begins with Germany’s latest retail sales figures.

A forecast 2% rebound in August could give the Euro a firmer start to the session.

Attention will then turn to Germany’s preliminary consumer price index for September, due later in the afternoon.

If inflation is shown to have accelerated, the Euro could find support as expectations build for another interest rate hike from the European Central Bank (ECB).

Even so, movement may remain restrained ahead of Friday’s Eurozone-wide CPI figures, which will provide a broader picture of inflationary pressures across the bloc.

For the Pound, the UK’s final second-quarter GDP figures could prove influential.

Confirmation of solid economic growth may provide Sterling with modest support, while an upward or downward revision to the initial reading could see GBP strengthen or weaken respectively.

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TAGS: Pound Euro Forecasts