Pound to Euro Holds Near €1.15

– Written by


David Woodsmith

STORY LINK Pound to Euro Holds Near €1.15

The Pound to Euro exchange rate (GBP/EUR) ticked modestly higher on Tuesday, holding close to recent highs as uncertainty surrounding Greenland continued to weigh on the single currency.

At the time of writing, GBP/EUR was trading near €1.1546, showing only a slight improvement on Tuesday’s opening levels.

The Euro (EUR) struggled to find traction on Tuesday as investors remained uneasy over fresh rhetoric from Washington regarding Greenland.

At the start of the week, US President Donald Trump reiterated earlier claims that the US ‘needs’ to control Greenland for strategic reasons, again suggesting that ownership would be secured ‘one way or another’, echoing previous hints of potential military involvement.

European leaders have strongly rejected the remarks, warning that such ambitions could undermine regional security and strain transatlantic relations.

The resulting uncertainty left investors increasingly wary of the Euro, particularly ahead of scheduled discussions between US and Danish officials later this week.

The Pound (GBP) traded in a narrow range on Tuesday following a mixed update from the British Retail Consortium.

While retail sales growth exceeded expectations in December, the figures showed that gains were driven almost entirely by food purchases, with non-food spending stagnating during the crucial Christmas trading period.

Retailers pointed to fragile consumer confidence, noting that households remained cautious and continued to delay discretionary spending amid ongoing cost-of-living pressures.

GBP/EUR Forecast: Central Bank Commentary in Focus

Looking ahead, speeches from policymakers at both the Bank of England and the European Central Bank could provide fresh direction for the Pound Euro exchange rate.

Bank of England policymaker Alan Taylor is due to speak first, and as one of the more dovish voices on the committee, any remarks hinting at further interest rate cuts this year could weigh on Sterling.

Later in the session, comments from ECB Vice-President Luis de Guindos will be closely watched for signals on whether the central bank believes its easing cycle has run its course or remains open to further cuts should economic conditions deteriorate.

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