Pound-to-Euro Forecast: GBP/EUR Price Near-Term Target 1.19

June 4, 2025 - Written by David Woodsmith

STORY LINK Pound-to-Euro Forecast: GBP/EUR Price Near-Term Target 1.19

Pound Sterling set to Breach 1.19 Handle Against the Euro

The Pound to Euro exchange rate (GBP/EUR) was stable on Tuesday, following a softer-than-expected inflation report from the Eurozone.

At the time of writing, the GBP to EUR conversion was trading around €1.1841, virtually unchanged from the morning’s opening levels.

The Euro (EUR) was subdued in early trade on Tuesday after the Eurozone’s preliminary consumer price index for May came in below projections.

Data from Eurostat showed that headline inflation slowed to 1.9% in May, down from 2.2% in April and undershooting expectations for a more modest decline to 2%. This marked the lowest rate of inflation in the bloc since September 2024.

The weaker print reinforced the investor expectations that the European Central Bank (ECB) is on course to announce a rate cut at its policy meeting later this week.

While the softer inflation print weighed on EUR sentiment, losses were capped as a cautious market mood helped bolster demand for safer assets such as the Euro.


Sterling traded in a narrow range on Tuesday, as attention turned to a parliamentary appearance by members of the Bank of England’s Monetary Policy Committee (MPC).

Among those speaking was Governor Andrew Bailey, who reiterated the bank’s intention to take a ‘gradual and measured’ approach to interest rate adjustments, citing ongoing concerns about inflation despite signs that wage growth is beginning to ease.

Bailey’s comments were broadly interpreted as consistent with the BoE’s current strategy of quarterly rate cuts.

Looking ahead, all eyes will be on the European Central Bank’s interest rate decision on Thursday. While a rate cut is widely anticipated, the tone of the accompanying forward guidance is likely to dictate the Euro’s next move.

If policymakers strike a dovish tone and hint at further easing later this year, the Euro could come under renewed pressure.

Additionally, any downward revisions to the ECB’s economic projections for the Eurozone could weigh further on the single currency.

Meanwhile, the Pound may find direction from the UK’s finalised services PMI, due Wednesday. An upward revision to May’s data would provide a fresh boost to GBP, particularly if it signals broader resilience in the UK’s services sector.

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TAGS: Pound Euro Forecasts