The Euro (EUR) extended gains against the British Pound (GBP) for the second consecutive day on Thursday, with EUR/GBP hovering near the key 0.8700 level amid cautious trading. The move follows dovish comments from Bank of England (BoE) policymaker Swati Dhingra and ongoing worries over the UK’s fiscal outlook.
At the time of writing, EUR/GBP is trading just above 0.8700, rebounding from an intraday low around 0.8681, as investors brace for a busy economic calendar on Friday.
Market activity remained subdued on Thursday with no major UK or Eurozone data releases. Attention now turns to upcoming UK figures including the GfK Consumer Confidence index, Retail Sales, and the preliminary S&P Global Purchasing Managers Index (PMI), alongside Eurozone HCOB flash PMIs, which will offer insights into economic momentum as 2025’s final quarter unfolds.
Speaking at the Central Bank of Ireland, BoE Monetary Policy Committee member Swati Dhingra highlighted the dampening impact of rising US tariffs and global trade tensions on UK demand, which is expected to ease inflation pressures. She also warned against maintaining “excessively high” interest rates for too long, cautioning this could harm investment and productivity.
These remarks followed UK Consumer Price Index (CPI) data released earlier showing headline inflation steady at 3.8% in September, below expectations of 4.0%. Core inflation eased to 3.5%, while services inflation held at 4.7%. The softer inflation backdrop, combined with Dhingra’s comments, has strengthened market expectations that the BoE may cut rates before year-end.
Money markets currently price in about a 75% chance of a 25 basis-point rate cut in December, with the November meeting seen as likely to hold rates steady.
Adding to Sterling’s pressure are fiscal concerns ahead of Chancellor Rachel Reeves’ November 29 budget. The UK faces a growing fiscal gap, potentially reaching £30 billion, sparking fears that tax increases or spending cuts may be needed to stabilize public finances. Such measures could weigh on growth and investor confidence, keeping Sterling vulnerable in the near term.
Pound Sterling Performance Today
The table below highlights the British Pound’s percentage changes against major currencies today. Notably, GBP is the strongest performer against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.02% | 0.13% | 0.46% | -0.06% | -0.33% | -0.15% | 0.06% | |
| EUR | -0.02% | 0.11% | 0.44% | -0.08% | -0.34% | -0.18% | 0.04% | |
| GBP | -0.13% | -0.11% | 0.33% | -0.18% | -0.45% | -0.29% | -0.07% | |
| JPY | -0.46% | -0.44% | -0.33% | -0.51% | -0.76% | -0.62% | -0.38% | |
| CAD | 0.06% | 0.08% | 0.18% | 0.51% | -0.26% | -0.10% | 0.12% | |
| AUD | 0.33% | 0.34% | 0.45% | 0.76% | 0.26% | 0.17% | 0.39% | |
| NZD | 0.15% | 0.18% | 0.29% | 0.62% | 0.10% | -0.17% | 0.22% | |
| CHF | -0.06% | -0.04% | 0.07% | 0.38% | -0.12% | -0.39% | -0.22% |
Note: The table shows percentage changes of currencies against each other, with the base currency listed on the left and the quote currency at the top.
