Pound to Euro Today: GBP/EUR Rate "Subdued" amid Trump Tariff Threats

March 28, 2025 - Written by David Woodsmith

STORY LINK Pound to Euro Today: GBP/EUR Rate "Subdued" amid Trump Tariff Threats

The Pound was rangebound on Thursday following US President Donald Trump’s latest tariff announcement.

At the time of writing, the Pound Euro (GBP/EUR) exchange rate was trading at around €1.1992, virtually unchanged from Wednesday’s opening levels.

On Thursday, the Euro (EUR) wavered against most of its major counterparts.

While it strengthened against some currencies, it weakened against others, even though the economic calendar was relatively quiet.

Despite the lack of significant data releases, the Euro managed to gain ground against several of its peers following US President Donald Trump's latest tariff announcement.

On Wednesday, Trump declared a 25% tariff on all non-American cars, which led to a weakening of the US Dollar (USD) on Thursday, allowing the Euro to benefit from its inverse relationship with USD.

However, concerns about potential additional tariffs on the Eurozone likely limited the Euro's upward momentum and caused it to decline against several other currencies.

On Thursday, the Pound (GBP) traded within a narrow range against most of its major counterparts, following the Spring Statement on Wednesday.

The budget included several spending cuts and a substantial downgrade of the UK's growth forecast by the Office for Budget Responsibility (OBR), which revised the projection from 2% to 1% for 2025.

Despite the Pound recovering most of its losses on Thursday, GBP exchange rates were unable to gain ground due to concerns over Trump's tariff announcement on cars, which sparked fears about the future economic health of the UK.

Looking ahead to Friday, the primary driver of movement for the Pound Euro exchange rate will likely be several key economic releases from both the UK and the Eurozone.

For the Pound, the UK is set to release its February retail sales data, where the index is forecast to drop from a previous reading of 1.7% to -0.3%.

If the data meets these expectations, it could put downward pressure on GBP exchange rates, potentially closing the week on a weaker note.

On the Euro side, Germany, the largest economy in the Eurozone, will publish its latest GfK consumer confidence index and jobs data.

Additionally, the Eurozone is expected to release its latest economic sentiment reading.

Any negative surprises from these reports could introduce fresh headwinds for the Euro, impacting its performance against the Pound and other major currencies.

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TAGS: Pound Euro Forecasts