Pound-to-Euro Rate Holds Steady After Overnight Volatility
The GBP/EUR exchange rate remained stable on Friday following an overnight spike, with traders awaiting key German economic data that could influence the Euro’s (EUR) performance.
Today’s Key Drivers for GBP/EUR
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German Retail Sales (April) – Expected to show recovery, potentially boosting the Euro.
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German Inflation (May Preliminary) – Forecast to dip to 2% (from 2.1%), possibly increasing ECB rate cut bets and weakening the EUR.
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US Dollar (USD) Impact – A retracement in USD strength could support the Euro.
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Risk Sentiment & Pound (GBP) Movement – With no major UK data, Sterling may fluctuate based on global risk appetite.
Daily Recap: GBP/EUR Stabilizes After USD-Driven Swing
The Pound to Euro exchange rate traded flat on Thursday, hovering around €1.1943 after an overnight surge linked to US Dollar volatility.
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EUR Weakness Overnight – The Euro dipped as the USD rallied following a US court ruling against Trump-era tariffs, raising hopes for reduced trade tensions.
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GBP Lacked Momentum – With no UK economic releases, Sterling saw limited movement but benefited slightly from improved risk sentiment.
Outlook: Will German Inflation Weigh on the Euro?
If today’s German inflation data confirms a slowdown, markets may price in a sooner ECB rate cut, pressuring the EUR/GBP exchange rate. Meanwhile, the Pound’s direction will depend on broader market risk trends.
Stay tuned for further forex updates as the GBP/EUR rate reacts to today’s economic releases.
