Pound to Euro: 1.2 in Sight?

January 29, 2025 - Written by Frank Davies

The Pound to Euro exchange rate (GBP/EUR) was muted on Tuesday as both UK and Eurozone data releases were in short supply.

At the time of writing, the GBP/EUR was trading at around €1.1925, virtually unchanged from Tuesday’s opening levels.

On Tuesday, the Euro (EUR) remained relatively quiet against most of its counterparts, largely due to a lack of data releases from the Eurozone.

However, investors may have also been cautious about making significant moves on the Euro, anticipating several high impact data releases scheduled for this week.

Key events on the horizon include the Eurozone's latest inflation figures, Germany's GfK consumer confidenc1e index, and the upcoming European Central Bank interest rate meeting.

On Tuesday, the Pound (GBP) struggled to find a clear direction and stayed mostly unchanged against its major trading partners.

This stagnation was largely due to another day of limited economic data from the UK, following a similarly quiet Monday.

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Without any substantial economic catalysts, GBP exchange rates had trouble drawing in buyers.

Looking ahead to Wednesday, the primary factor influencing the Pound Euro exchange rate will likely be the release of economic data from the Eurozone.

Germany, a key member of the Bloc, will unveil its latest GfK consumer confidence index. This index is anticipated to show a slight improvement, rising from -21.3 to -20.0.

However, despite this modest uptick, the index is still expected to remain well below the zero mark, indicating ongoing pessimism among consumers.

This negative sentiment could continue to put downward pressure on the EUR exchange rate during mid-week trading.

On the other side of the Channel, the UK is set to have another relatively quiet day in terms of economic data releases. As a result, GBP exchange rates are likely to remain directionless, with traders and investors awaiting more significant economic indicators to guide their decisions.

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TAGS: Pound Euro Forecasts

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