EUR/GBP

EUR/GBP trades sideways on Monday, holding in a narrow range near levels last seen in April 2025. The British Pound (GBP) keeps the upper hand against the Euro (EUR) as traders weigh the policy outlook for the Bank of England (BoE) and the European Central Bank (ECB).

ING’s Francesco Pesole says EUR/GBP trades 2.6–2.8% below short-term fair value, reflecting a French risk premium but still looking stretched. Following a hawkish Bank of England hike, he expects further tightening to be limited, sees market pricing for multiple cuts as too aggressive, and views a move back toward 0.840 in EUR/GBP as the most realistic outcome in coming weeks.

EUR/GBP trades flat on Friday, consolidating within the tight range seen so far this week. The subdued price action suggests bears are taking a breather after five consecutive weekly losses that pushed the cross into oversold territory.

The Euro (EUR) wavers without a clear trend against the British Pound (GBP) on Friday, unable to take any significant advantage of the bright German Industrial Production figures released earlier on the day.

The British Pound (GBP) struggles for direction against the Euro (EUR) on Thursday as the Bank of England’s (BoE) interest rate hike draws a muted market reaction, with the move already priced in.

MUFG’s Lee Hardman reports that the Pound has benefited from broad US Dollar weakness, with GBP/USD briefly above 1.3500 and EUR/GBP near 0.8300. Markets expect the BoE to deliver its first rate hike since the US-Iran conflict began, though MUFG anticipates cautious forward guidance and fewer hikes than currently priced, limiting but not reversing recent Pound strength.