Pound to Euro Rate Rises as EUR/USD Momentum Softens

April 28, 2025 - Written by David Woodsmith

STORY LINK Pound to Euro Rate Rises as EUR/USD Momentum Softens

A marginal decline seen in EUR/USD encouraged some Pound Euro (GBP/EUR) exchange rate gains on Monday as an improving market mood supported Sterling over the safer single currency.

At the time of writing, the Pound Euro (GBP/EUR) exchange rate traded at €1.1757, up almost 0.4% on the day.

The increasingly risk-sensitive Pound (GBP) found support at the start of the week, advancing against several major peers amid a brightening market mood. With no major UK data releases early on Monday, a general appetite for risk provided the initial lift for Sterling.

As the session unfolded, the Pound extended its gains, helped by encouraging figures from the Confederation of British Industry (CBI). The latest distributive trades survey showed a marked improvement, climbing from -41 to -8, a far better result than the -20 economists had predicted.

Although this still represented a fall in sales volumes, the decline was at a much slower pace than many had feared. This offered investors some reassurance about the resilience of UK consumer activity.

The Euro (EUR) struggled to find a clear direction at the start of the week, with a quiet Eurozone calendar offering little catalyst for movement.

Caution also prevailed among EUR investors ahead of major economic releases later in the week, notably the latest GDP and inflation reports. With both datasets likely to influence European Central Bank (ECB) interest rate expectations, investors appeared reluctant to make significant moves until the figures are in.


While the single currency managed to hold its ground against many counterparts, it slipped against the Pound, with Sterling gaining the upper hand in Monday’s risk-positive environment.

With limited UK economic data scheduled for release over the coming days, GBP investors may instead turn their attention to remarks from Bank of England (BoE) Deputy Governor Dave Ramsden. Any indication from Ramsden that US tariffs could dampen UK inflationary pressures – potentially opening the door to further interest rate cuts – might put fresh downward pressure on the Pound.

Across the Channel, the Euro could face headwinds on Tuesday as the session begins with Germany’s latest consumer confidence survey. Analysts anticipate a dip in sentiment among German households in May, casting a shadow over the Eurozone’s economic outlook.

Additional headwinds could follow mid-morning, with expectations that the Eurozone’s economic sentiment reading for April will show further deterioration. Even so, broader Euro movements may remain relatively subdued in the run-up to two key releases later in the week: the Eurozone’s GDP growth figures on Wednesday and inflation data on Friday.

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TAGS: Pound Euro Forecasts