British Pound Steady vs Euro and Dollar following Eurozone and UK Data Releases

March 25, 2025 - Written by Tim Boyer

STORY LINK British Pound Steady vs Euro and Dollar following Eurozone and UK Data Releases

The Pound was trapped in a narrow range against currency peers Euro and US Dollar on Tuesday following the release of some economic data from the Eurozone and the UK.

At the time of writing, the Pound to Euro exchange rate GBP/EUR was trading at around €1.1971, virtually unchanged from Tuesday’s opening levels.

On Tuesday, the Euro (EUR) had difficulty gaining traction and traded mostly sideways against most of its peers even after the release of Germany’s latest Ifo business climate index for March.

The index met market expectations, and rose from 85.3 to 86.7, reaching the highest level since July.

However, despite this positive data, the Euro failed to strengthen against its counterparts and remained largely unchanged following the announcement.

On Monday, the Pound (GBP) fluctuated in a tight range against most of its major counterparts after the release of the UK’s latest CBI distributive trades survey.

The March index plummeted more than expected, dropping from -23 to -41, rather than the predicted -28.

However, despite this underwhelming retail data, the GBP held steady during Tuesday’s European trading session.

As we look toward Wednesday, the Pound Euro exchange rate will likely be influenced by economic data from the UK.

The UK is scheduled to release its latest Consumer Price Index (CPI) figures, which are expected to show a decline in both headline and core inflation for February.

If the data meets these forecasts, it could signal a higher probability of interest rate cuts by the Bank of England (BoE), potentially weakening the Pound in mid-week trading.

Adding to the mix, the UK will also reveal its Spring Statement.

Any announcements by Chancellor Rachel Reeves such as spending cuts or tax increases could lead to significant volatility in the Pound.

On the Euro side, the absence of major economic releases on Wednesday means the currency will likely be more
susceptible to shifts in market sentiment.

A shift toward risk-averse trading conditions could bolster the Euro's status as a safe-haven currency as we move into the middle of the week.

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TAGS: Pound Sterling Forecasts