British Pound to Euro Forecast: Best EUR Buyer Rates in Months

– Written by


David Woodsmith

STORY LINK British Pound to Euro Forecast: Best EUR Buyer Rates in Months

The Pound to Euro exchange rate (GBP/EUR) climbed to fresh multi-month highs above 1.1550 as improving global risk appetite supported Sterling and pressured the single currency in broader markets.

These conversion levels offer some of the best rates for euro buyers in months, particularly for those planning international transfers or large currency exchanges.

GBP/EUR Forecasts: Above 1.1550

The Pound to Euro (GBP/EUR) exchange rate has edged above 1.1550 on Monday.

The Euro has been a key beneficiary of recent dollar losses and the sharp market correction has dragged the single currency lower in global markets which has helped underpin GBP/EUR move above 1.1550.

UK data also maintained a broadly positive trend.

GBP/EUR still needs to break above 1.1565 to boost confidence in the potential for a breakout and sustained gains.

The Bank of England (BoE) and ECB are both expected to leave interest rates on hold this week, although rhetoric from the two banks will be crucial for GBP/EUR moves.

There has been speculation that the ECB would warn against excessive Euro gains.

ING commented; “This week’s central focus is determining how seriously the European Central Bank views the euro’s appreciation. The fact that EUR/USD is no longer at the much-feared 1.20 level does decrease the chances of any vocal reaction from ECB members.”

As far as data is concerned, the PMI manufacturing index was revised to 51.8 for the final reading from the flash figure of 51.6 and confirmed at a 17-month high.

There was also a rebound in orders and business confidence, although employment continued to decline.

Rob Dobson, Director at S&P Global Market Intelligence commented; “UK manufacturing made a solid start to 2026, showing encouraging resilience in the face of rising geopolitical tensions. Rates of output and order book growth accelerated, while new export business rose for the first time in four years, with Europe, China and the US the main recipients.

He added; “Cost pressures are creeping higher though, as the pass through of the increased Minimum Wage and employer NI contributions continue to work through the supply chain.”

Elsewhere, Nationwide reported that UK house prices increased 0.3% for January after a 0.4% decline previously with an annual increase of 1.0% from 0.6% previously.

Nationwide’s Chief Economist Robert Gardner is cautiously optimistic over the outlook; “Housing market activity is likely to recover in the coming quarters, especially if the improving affordability trend seen last year is maintained.”

The BoE will announce its latest interest rate decision on Thursday with strong expectations that there will be no change at this meeting.

RBC has abandoned its call for a cut at this meeting; “We no longer expect the MPC to deliver a rate cut at its February meeting and instead look for a 6-3 vote to hold Bank Rate at 3.75%.”

The bank still expects rate cuts in April and August which would tend to sap Pound support on yield grounds.

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TAGS: Pound Euro Forecasts