Pound shows modest recovery but remains under pressure against Euro
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Daily Currency Update
The pound has recovered slightly over the past couple of days, but it remains over 5% weaker against the euro year-to-date, and many analysts expect this downward trend to continue into next year.The euro’s strength has been supported by growing expectations of an economic rebound in the Eurozone and a potential pause in the ECB’s rate-cutting cycle—both factors that tend to lift the single currency.
Meanwhile, sterling has been weighed down by a string of weaker UK economic data and rising concerns over the government’s fiscal direction. These contrasting dynamics are shaping a market bias that could keep GBP/EUR under pressure in the months ahead.
Key Movers
The US dollar remained subdued near a five-week low this morning as markets positioned ahead of an expected Federal Reserve rate cut next week, an outlook that continues to weigh on the greenback across major currency pairs.With markets widely pricing in a 25bp cut at the Fed’s December 9–10 meeting, traders will be watching closely for guidance on the scale of further easing in 2026, which could influence the dollar’s trajectory into the new year.
Expected Ranges
- GBP/USD: 1.3315 - 1.3395 ▲
- GBP/EUR: 1.1425 - 1.1485 ▲
- GBP/AUD: 2.0105 - 2.0195 ▼
- EUR/USD: 1.1625 - 1.1695 ▲