Pound to Euro Rate Dragged Lower by EUR/USD Rally to 1.11

April 10, 2025 - Written by David Woodsmith

STORY LINK Pound to Euro Rate Dragged Lower by EUR/USD Rally to 1.11

A EUR/USD rally past 1.11 on foreign exchange markets has dragged the Pound Sterling lower against the Euro on Thursday.

The Pound Euro (GBP/EUR) exchange rate weakened on Thursday following US President Donald Trump’s U-turn on his global tariffs.

On Thursday, the Euro (EUR) gained strength against most of its trading partners as Donald Trump announced a 90-day pause on global tariffs for all countries, except China, with a temporary 10% tariff.

In response to this shift, the US Dollar (USD) continued its downward trend during Thursday’s European trading session.

Due to the inverse relationship between the Euro and the US Dollar, the Euro capitalised on the USD's decline, rising against the majority of its counterparts.

On Thursday, the Pound (GBP) managed to hold its ground against most of its rival currencies, even in the absence of significant economic data.

Despite the lack of major British economic indicators, Sterling maintained its strength, partly because of a decrease in expectations for an interest rate cut by the Bank of England (BoE).


With the UK bond markets stabilising, the probability of a BoE interest rate cut next week dropped from almost 100% to 78%, offering support to the Pound.

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

In the UK, the latest GDP figures are set to be released, and if the index reports an expected minor rebound, it could provide a positive boost to GBP exchange rates, helping to end the week on a strong note.

Meanwhile, in the Eurozone, Germany will unveil its latest inflation data.

Should the Consumer Price Index (CPI) report a downturn as expected, it could put downward pressure on the Euro, potentially weakening the single currency as the week draws to a close.

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TAGS: Euro Forecasts Pound Sterling Forecasts