February 14, 2025 – Written by Frank Davies
STORY LINK Pound to Euro Forecast: GBP/EUR Holds 1.20
UPDATE: The Pound Sterling (GBP) was trapped in a narrow range against the Euro (EUR) on Thursday following the release of the UK’s latest GDP reading.
At the time of writing, the Pound Euro (GBP/EUR) exchange ratewas trading at around €1.1991, virtually unchanged from Thursday’s opening levels.
On Thursday, the Pound (GBP) saw a slight uptick against most of its major trading partners, despite remaining relatively stable against the Euro (EUR).
This movement came after the release of the UK’s latest GDP figures for the final quarter of last year, which showed a surprising 0.1% growth, contrary to the anticipated 0% reading.
The positive data helped to alleviate some of the pessimism that had surrounded the UK economy this week, and also reduced the likelihood of an interest rate cut by the Bank of England (BoE).
Following the release of the GDP figures, money markets pushed back their expectations for a BoE rate cut from May to June.
On Thursday, the Euro managed to hold its ground and even strengthened against several of its trading partners, despite the release of some disappointing domestic data.
The Eurozone published its latest industrial production figures, which revealed a more significant downturn than anticipated in December.
The index fell from 0.4% to -1.1%, surpassing the expected decline of -0.6%.
Looking ahead to Friday, the main factor influencing the Pound Euro exchange rate will likely be the release of several key economic data points from the Eurozone.
The Eurozone is set to publish its latest employment change survey and GDP figures.
Given that both indicators are expected to show a decline, the Euro might end the week on a sour note.
For the Pound, there are no significant UK data releases scheduled for Friday, which means Sterling is likely to trade without a clear trajectory as the week comes to a close.
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
