Pound-to-Euro Rate Ticks Higher as EUR/USD Consolidates Around 1.14

April 23, 2025 - Written by David Woodsmith

STORY LINK Pound-to-Euro Rate Ticks Higher as EUR/USD Consolidates Around 1.14

The Pound Euro (GBP/EUR) exchange rate dipped on Wednesday following the publication of both the UK’s and the Eurozone’s latest PMI readings.

On Wednesday, the Pound (GBP) lost ground against most of its major counterparts after the release of the UK's latest services PMI data.

The preliminary PMI for April revealed a significant downturn in the UK's crucial services sector, dropping below the 50-point threshold for the first time in 18 months, which is the dividing line between expansion and contraction.

Amid the ongoing global disruption caused by US President Donald Trump's tariffs, this month's services sector data mirrored the broader economic challenges, leading to a decline in demand for the Pound in mid-week trading.

On Wednesday, the Euro (EUR) gained ground against several of its major peers following the release of the Eurozone's PMI data.

Like the UK, the Eurozone experienced a decline in its services sector. However, the overall PMI figures for the Eurozone remained stable, providing support for the single currency.

Additionally, a weakening US Dollar (USD) bolstered EUR exchange rates, thanks to the inverse relationship between the two currencies.


Looking ahead to Thursday, the main factor influencing the Pound Euro exchange rate will likely be the publication of Germany's latest Ifo business climate index.

The April index is anticipated to show a slight decline, which could put downward pressure on the Euro if the data meets expectations.

For the Pound, the UK will release its latest CBI business optimism index and industrial trends orders.

Both indicators are expected to show a decline, which could weaken GBP exchange rates as the week draws to a close.

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TAGS: Pound Euro Forecasts