EUR/GBP is trading around 0.8660 on Tuesday at the time of writing, virtually unchanged on the day, as market participants adopt a dovish stance ahead of initial inflation figures from Germany.
The British Pound (GBP) continues to get support from messaging provided by the Bank of England (BoE), which reiterated at its latest meeting that monetary easing is likely to remain gradual. After cutting its key interest rate by 25 basis points to 3.75% in December, the central bank stressed that future policy decisions will remain closely linked to inflation dynamics, which remains above the 2% target.
According to market forecasts cited by Reuters, investors are pricing in at least one rate cut in the first half of the year, with about a 50% chance of a second cut before the end of the year, a scenario that nonetheless limits downside potential for sterling.
On the euro side, the overall tone remains more fragile. Ongoing geopolitical tensions between Russia and Ukraine continue to weigh on sentiment, at a time when the Eurozone remains structurally vulnerable to energy-related risks. In addition, recent macroeconomic data from the region indicate a moderate slowdown in activity. The eurozone services PMI (HCOB) was revised down to 52.4 in December, while the composite PMI stood at 51.5, confirming a loss of momentum towards the end of the year.
Market attention now turns to the release of German CPI data. Inflation is expected to rise by 0.2% on a monthly basis in the national gauge, while the consolidated consumer price index is expected to rise by 0.4% over the same period. A stronger-than-expected reading could provide short-term support to the euro by stoking speculation that the ECB may maintain a less accommodative stance, although the broader backdrop of weak growth still calls for caution.
Against this background, the EUR/GBP pair remains trapped in a consolidation phase, as investors wait for clearer macroeconomic signals before taking more decisive positions on the pair.
Euro price today
The table below shows the percentage change of the Euro (EUR) against the major currencies listed today. The euro was the strongest against the Swiss franc.
| US dollars | euro | GBP | JPY | Canadian | Australian dollar | New Zealand dollar | Swiss franc | |
|---|---|---|---|---|---|---|---|---|
| US dollars | 0.15% | 0.13% | 0.06% | 0.05% | -0.03% | -0.02% | 0.21% | |
| euro | -0.15% | -0.01% | -0.11% | -0.10% | -0.17% | -0.17% | 0.06% | |
| GBP | -0.13% | 0.01% | -0.08% | -0.08% | -0.16% | -0.15% | 0.07% | |
| JPY | -0.06% | 0.11% | 0.08% | -0.01% | -0.08% | -0.09% | 0.15% | |
| Canadian | -0.05% | 0.10% | 0.08% | 0.00% | -0.08% | -0.08% | 0.15% | |
| Australian dollar | 0.03% | 0.17% | 0.16% | 0.08% | 0.08% | 0.00% | 0.23% | |
| New Zealand dollar | 0.02% | 0.17% | 0.15% | 0.09% | 0.08% | -0.01% | 0.22% | |
| Swiss franc | -0.21% | -0.06% | -0.07% | -0.15% | -0.15% | -0.23% | -0.22% |
The heat map shows the percentage changes in major currencies versus each other. The base currency is chosen from the left column, while the counter currency is chosen from the top row. For example, if you select EUR from the left column and move along the horizontal line to USD, the percentage change displayed in the box will represent EUR (base)/USD (quote).
