Pound to Euro Today: GBP/EUR Rate "Rangebound" following Eurozone Unemployment

March 4, 2025 - Written by David Woodsmith

STORY LINK Pound to Euro Today: GBP/EUR Rate "Rangebound" following Eurozone Unemployment

The Pound was trapped in a narrow range against the Euro on Tuesday following the release of the Eurozone’s latest labour data.

At the time of writing, the Pound Euro (GBP/EUR) exchange rate was trading at around €1.2105, virtually unchanged from Tuesday’s opening levels.

On Tuesday, the Euro (EUR) managed to maintain its stability against most of its peers following the release of the latest
unemployment figures for the Eurozone.

The unemployment rate for January stayed at 6.2%, contrary to expectations of a rise to 6.3%, providing some support to EUR exchange rates.

Despite a generally negative trading day, the single currency managed to stay afloat, further bolstered by Monday’s Europe-led efforts to bring peace to Ukraine.

On Tuesday, the Pound (GBP) wavered against its peers, remaining relatively flat against most currencies but weakening in other areas, due to a lack of UK data releases and a cautious market sentiment.

After Monday's positive trading performance, Tuesday's more subdued market mood dampened the increasingly risk-sensitive Sterling.

Investors may have also been hesitant to make aggressive bets on the Pound ahead of important data releases later in the week.

As we move into Wednesday, the key factors influencing the Pound Euro exchange rate will likely be economic data from both the UK and the Eurozone.

First up, both regions will release their finalised services PMI figures for February.

With expectations of slight improvements in both indices, this could provide a boost to both the Pound and the Euro.

Additionally, Bank of England Governor Andrew Bailey is set to deliver a speech.

If Bailey's comments lean towards a more hawkish stance, it could further strengthen the Pound.

The Eurozone will also unveil its January PPI data, which could offer additional support to the Euro during mid-week trading.

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TAGS: Pound Euro Forecasts