The Pound-Euro rate is holding near 1.17 as markets weigh increasingly hawkish ECB expectations against resilient UK rate-hike bets.
The Pound to Euro (GBP/EUR) exchange rate opened the new week close to the 1.1700 level after recovering from last week’s lows around 1.1650.
GBP/EUR traded around 1.1690-1.1700 during early Monday dealing, leaving the pair broadly unchanged after a volatile week for both UK and Eurozone rate expectations.
The Euro continues to draw support from growing expectations that the European Central Bank will raise interest rates in September, with persistent energy-driven inflation risks and resilient Eurozone activity strengthening the case for further tightening.
Pound Sterling has nevertheless remained relatively well supported. Markets continue to price a meaningful chance of another Bank of England rate increase before year-end, even though most economists expect policymakers to leave Bank Rate unchanged.
This leaves GBP/EUR caught between relatively hawkish rate expectations on both sides, with Thursday’s ECB meeting account now a potentially important test of whether policymakers are prepared to tighten further in September.
Pound to Dollar (GBP/USD): 1.36381 (+0.01%)
Euro to Dollar (EUR/USD): 1.165735 (-0.09%)
WEEKLY RECAP:
The Pound (GBP) was met by volatility last week as a series of UK economic releases painted an inconsistent picture of the domestic economy, leaving investors with little clarity over the outlook for Bank of England (BoE) monetary policy.
Sterling came under pressure at the beginning of the week after employment figures revealed that unemployment remained stuck at 4.9%, while wage growth slowed to its weakest level since late 2020 among private-sector workers.
The Pound failed to find much support from Wednesday’s inflation figures either, with an acceleration in price growth doing little to strengthen expectations that the BoE will resume raising interest rates later this year.
Sterling subsequently attempted to recover, but its gains faded as a steep drop in retail sales undermined confidence in the UK consumer economy. Even a stronger-than-expected set of PMI readings offered limited support, leaving GBP exchanges subdued heading into the weekend.
The Euro (EUR) drifted higher through the first half of last week, with the single currency attracting modest support amid a stronger-than-expected improvement in German economic sentiment.
The Euro then really started to catch bids in mid-week trade as its inverse trade relationship with the US Dollar (USD) saw EUR demand jump as the ‘Greenback’ nosedived.
However, the single currency was unable to sustain its best levels, being pressured in the latter half of the week by fresh European energy price concerns.
GBP/EUR Forecast: ECB Minutes Could Reinforce September Rate-Hike Bets
Turning to this week, the primary catalyst of movement for the Pound to Euro exchange rate may be the publication of the minutes from the European Central Bank’s (ECB) July policy meeting.
If the minutes indicate that policymakers are open to tightening monetary policy in the short-term it’s likely to bolster bets for a September rate hike and lift the single currency.
Meanwhile, with notable UK economic data set to dry up and UK parliament still in recess, movement in the Pound will likely be linked to wider market trends this week.
Pound Sterling Prices: This Week
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.76% | -0.62% | -0.05% | -0.19% | -0.90% | -1.15% | -1.24% | |
| EUR | +0.77% | +0.14% | +0.72% | +0.57% | -0.13% | -0.39% | -0.49% | |
| GBP | +0.62% | -0.14% | +0.57% | +0.43% | -0.28% | -0.54% | -0.63% | |
| JPY | +0.05% | -0.72% | -0.57% | -0.15% | -0.85% | -1.10% | -1.20% | |
| CAD | +0.19% | -0.57% | -0.43% | +0.15% | -0.70% | -0.96% | -1.05% | |
| AUD | +0.90% | +0.14% | +0.28% | +0.86% | +0.71% | -0.26% | -0.35% | |
| NZD | +1.16% | +0.39% | +0.54% | +1.12% | +0.97% | +0.26% | -0.09% | |
| CHF | +1.26% | +0.49% | +0.63% | +1.21% | +1.06% | +0.35% | +0.09% |
The FX heat map compares how Pound Sterling (GBP) has performed against a basket of major currencies over the past week. The largest move was against the Swiss Franc, where Pound Sterling recorded its sharpest decline. Data comparing prices today (24/08/2026 20:08 UTC) and daily close on 17/08/2026.
To read the table, choose the base currency from the left-hand column and then move across to the quote currency along the top row. For example, the GBP row and USD column shows the weekly percentage move in GBP/USD.
Our currency coverage draws on live market data, official economic releases and published bank research.
