Pound to Euro Rate Firms at 1.163 as EUR/USD Consolidates

April 22, 2025 - Written by Tim Boyer

STORY LINK Pound to Euro Rate Firms at 1.163 as EUR/USD Consolidates

A EUR/USD consolidation has seen the Pound Sterling remain largely steady against the Euro on Tuesday as markets continued to digest the impact of US President Donald Trump’s global tariff measures.

The Pound Euro (GBP/EUR) exchange rate was trading at around €1.1637, roughly unchanged from Tuesday’s opening levels.

The Pound (GBP) held its ground against most major currencies on Tuesday as trading resumed in Europe following the Easter break.

Sterling’s stability was largely underpinned by a weakening US Dollar (USD) and renewed hopes for UK–US trade discussions.

UK Chancellor Rachel Reeves is set to advocate for global free trade at the upcoming IMF meetings in Washington, while Prime Minister Keir Starmer continues his efforts to secure a trade deal with Donald Trump.

Despite these supportive factors, GBP gains were capped as markets looked ahead to a speech from Bank of England (BoE) Deputy Governor Sarah Breeden. Any indication from Breeden that a slowdown in global growth might prompt the BoE to ease monetary policy could weigh on the Pound.

The Euro (EUR) saw limited demand on Tuesday, slipping against several major peers, despite weakness in the US Dollar with which it typically shares an inverse relationship.


Investor sentiment towards the single currency remained subdued, likely weighed down by remarks made by European Central Bank (ECB) President Christine Lagarde ahead of the Easter weekend.

After delivering a widely expected 25 basis-point rate cut, Lagarde warned that US tariffs could hinder economic growth across the Eurozone, a concern that appeared to linger and put pressure on the Euro as markets reopened on Tuesday.

Looking forward to Wednesday, movement in the Pound Euro exchange rate is expected to be largely influenced by the latest PMI figures from both the UK and the Eurozone.

In the UK, early estimates for services and manufacturing PMIs are projected to show a decline. If confirmed, this could place pressure on the Pound and dampen investor confidence.

Meanwhile, the Eurozone’s PMI figures are also expected to soften.

If the data meets expectations, the Euro could face similar headwinds as markets digest signs of slowing economic momentum across the region.

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TAGS: Pound Euro Forecasts