Pound to Euro Rate Strengthens as UK Growth Beats Expectations

Modified: Wednesday, 30 September 2026 22:31 BST - Written by David Woodsmith

STORY LINK Pound to Euro Rate Strengthens as UK Growth Beats Expectations

The Pound to Euro (GBP/EUR) exchange rate edged higher on Wednesday as the latest revision to UK economic growth offered fresh support for Sterling.

At the time of writing, the GBP/EUR exchange rate was trading at around €1.1690, up roughly 0.2% from the start of Wednesday’s session.

The Pound (GBP) found renewed demand on Wednesday after revised figures from the Office for National Statistics (ONS) showed the UK economy expanded more quickly than first estimated during the second quarter.

Updated national accounts revealed that GDP growth reached 0.5% between April and June, marking an upward revision from the previous estimate of 0.4%.

The stronger reading provided a boost to Sterling sentiment, with signs of greater resilience in the UK economy potentially giving the Bank of England (BoE) more room to consider raising interest rates when policymakers meet again in November.

The Euro (EUR) struggled to attract support on Wednesday morning after Germany’s latest retail sales figures failed to match expectations.

Although retail sales rebounded from a 3.2% decline to a 1.3% increase in August, the recovery fell short of forecasts for growth of as much as 1.5%.

The disappointing result offered another indication that elevated energy costs and lingering economic uncertainty continue to weigh on household spending.

The Euro also faced pressure from Germany’s latest labour market figures, which showed the number of unemployed people increased by more than economists had anticipated in September.

Near-Term GBP/EUR Forecast: Eurozone Inflation in Focus

Looking ahead, the Pound Euro exchange rate could see increased volatility with the release of the Eurozone’s latest inflation figures.

September’s preliminary CPI reading is expected to show a significant acceleration in price growth across the bloc, with annual inflation forecast to rise from 3.2% to 3.6%.

If confirmed, such a jump could revive speculation that the European Central Bank (ECB) may need to raise interest rates again in October, potentially providing a lift for the Euro.

Meanwhile, with little in the way of major UK economic data due over the remainder of the week, Sterling may find it harder to build on Wednesday’s gains.

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TAGS: Pound Euro Forecasts