Pound to Euro Rate Dips as EUR Bolstered by Upbeat Data, USD Weakness

April 25, 2025 - Written by Ben Hughes

STORY LINK Pound to Euro Rate Dips as EUR Bolstered by Upbeat Data, USD Weakness

The Pound-to-Euro exchange rate dipped on Thursday following the publication of some economic data from both within the Eurozone and the UK.

At the time of writing, the GBP/EUR rate was trading at around €1.1687, down roughly 0.2% from Thursday’s opening levels.

On Thursday, the Euro (EUR) strengthened against most of its counterparts following the release of Germany’s latest Ifo business climate index.

The April figure came in at 86.9, unexpectedly rising from the previous month's 86.7 and exceeding forecasts that predicted a decline to 85.2.

This marked the highest level since July 2024, providing a significant boost to the Euro.

Adding to the Euro's gains was a declining US Dollar (USD). Given the inverse relationship between the two currencies, a weakening USD further supported the Euro's upward momentum.

On Thursday, the Pound (GBP) fluctuated against other currencies following the release of the UK’s latest CBI business optimism index and industrial trends orders.


The data came in stronger than forecast, with the business optimism index climbing from -47 to -33, surpassing the forecast of -40.

Similarly, the CBI’s industrial trends survey improved from -29 to -26, defying expectations of a drop to -35.

Despite these positive figures, the Pound found it difficult to make gains, as ongoing market volatility overshadowed the favourable UK economic data.

As we move toward the end of the week, the Pound Euro exchange rate will likely be influenced by the release of the UK’s latest retail sales figures.

Economists predict that March’s retail sales index will see a significant decline, dropping from the previous month's 1% to an estimated -0.4%.

If the data aligns with these forecasts and confirms a downturn in retail sales, it's likely that the Pound will weaken by the end of the week.

On the Euro side, the Eurozone will not be releasing any major economic data on Friday.


This absence of fresh information could result in the Euro trading without a clear trend as the week concludes.

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TAGS: Pound Euro Forecasts