GBP/EUR Exchange Rate Forecast: Consumer Confidence Data in Focus

March 20, 2025 - Written by David Woodsmith

STORY LINK GBP/EUR Exchange Rate Forecast: Consumer Confidence Data in Focus

The Pound (GBP) firmed against the Euro (EUR) on Thursday following the Bank of England’s (BoE) latest interest rate meeting.

At the time of writing, the Pound Euro (GBP/EUR) exchange rate was trading at around €1.1954, up roughly 0.2% from Thursday’s opening levels.

On Thursday, the Pound (GBP) saw gains against most of its major counterparts following the Bank of England's latest interest rate decision.

As forecast, the central bank maintained the rates at 4.5%, which provided a boost to the Pound.

Adding to the positive sentiment around Sterling was the bank's hawkish outlook, reiterating its commitment to a ‘gradual and careful approach to removing policy restraint.’

On Thursday, the Euro (EUR) experienced mixed movements against its major counterparts, declining against some while holding steady against others, despite the days cautious market environment.

Despite the Euro's reputation as a safe-haven currency and some encouraging remarks from European Central Bank (ECB) President Christine Lagarde, the single currency failed to gain significant traction.

The primary factor behind this was a strengthening US Dollar (USD), which limited the Euro's potential gains due to their inverse relationship.

Moving into Friday, the key factor influencing the Pound Euro exchange rate will likely be economic confidence data from both the Eurozone and the UK.

The Eurozone is set to release its preliminary consumer confidence figures for March. If these numbers show a slight improvement as expected, the Euro could receive a modest boost to end the week.

On the Pound's side, the UK will also publish its latest GfK consumer confidence index for March. With expectations pointing to another decline, the Pound may face downward pressure if the data aligns with forecasts.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Pound Euro Forecasts