– Written by
Frank Davies
STORY LINK Pound to Euro Rate Today: ECB Comments Push GBP/EUR to New High
The Pound Euro (GBP/EUR) exchange rate advanced to a fresh 16-month peak on Wednesday, as comments from European Central Bank (ECB) President Christine Lagarde put the single currency under pressure.
At the time of writing, GBP/EUR was trading at €1.1851, its strongest level since June 2025.
The Euro (EUR) fell to fresh multi-month lows on Wednesday, with its negative correlation to the US Dollar (USD) and remarks from ECB President Christine Lagarde both contributing to the decline.
Lagarde said the ECB had yet to see any second-round effects on inflation, though it remained vigilant for signs of them.
Her comments struck a mildly dovish tone, putting further pressure on the single currency.
The ECB President also addressed France’s debt crisis, suggesting the bank would not intervene for now and that the primary solution lay in French fiscal policy.
Concerns over French debt have been a persistent drag on the Euro in recent weeks and continue to trouble EUR investors.
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Although French bond yields have fallen this week as parliament debates the government’s 2027 budget, uncertainty surrounding the country’s finances continues to limit demand for the single currency.
The Euro briefly recovered as the US Dollar weakened, but the ‘Greenback’ regained ground later in the session, sending EUR to new lows.
The Pound (GBP) extended its advance against the struggling Euro on Wednesday, reaching a new 16-month high after an earlier pullback prompted some investors to take profits.
Sterling subsequently pushed higher again to establish another peak for the period.
However, the Pound’s upward momentum may have been curbed by remarks from Bank of England (BoE) Chief Economist Huw Pill, delivered on the sidelines of the International Monetary Fund’s (IMF) annual meeting.
Pill indicated that he expects interest rates to rise over the coming months, but cautioned against market expectations for four rate hikes by September 2027.
Even so, Sterling regained ground against the Euro as renewed pressure on the single currency helped GBP extend its gains.
Near-Term GBP/EUR Forecast: UK GDP Data in Focus
Looking ahead, Thursday’s release of the UK’s latest monthly GDP figures is likely to draw attention from Pound investors.
The British economy is expected to have shrunk by 0.1% in August, and a result in line with forecasts could weigh on Sterling.
However, the data could still surprise to the upside, as it has in recent months.
Stronger-than-expected growth would potentially give the Pound a boost.
For the Euro, the Eurozone’s latest industrial production figures are also in focus.
With output expected to have stagnated in August, the data could limit gains for the single currency.
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TAGS: Pound Euro Forecasts
