Exchange Rate Calculator

The EUR/GBP exchange rate, representing the value of the euro against the British pound, has exhibited notable fluctuations over the past few months. These movements have been influenced by a combination of monetary policies, economic indicators, and political developments within the Eurozone and the United Kingdom.

Recent Exchange Rate Movements

As of July 3, 2025, the EUR/GBP pair is trading around 0.8632 GBP per euro. Over the past year, the exchange rate has experienced a 1.91% increase, indicating a strengthening of the euro relative to the pound. In the past month alone, the pair has risen by 1.87%, reflecting recent market dynamics. (tradingview.com)

Monetary Policy Divergence

A significant factor influencing the EUR/GBP exchange rate is the divergence in monetary policies between the European Central Bank (ECB) and the Bank of England (BoE). The ECB has been gradually reducing interest rates to counteract low inflation and sluggish growth, with rates reaching 3.15% by the end of 2024. In contrast, the BoE has maintained a more restrictive stance, with its policy rate at 4.75% during the same period. This divergence has made the pound more attractive to investors seeking higher yields, contributing to its relative strength against the euro. (fxopen.com)

Economic Performance and Indicators

The economic performance of both regions has also played a crucial role in shaping the exchange rate. The UK economy has faced challenges, including a rising debt burden and disappointing economic indicators, partly driven by substantial tax hikes on businesses. These factors have exerted pressure on the pound. Conversely, the Eurozone has encountered economic slowdowns in major economies like Germany and France, alongside falling inflation, leading to expectations of monetary policy easing by the ECB. These dynamics have influenced investor sentiment and the relative strength of the euro and pound. (fxopen.com)

Political Developments

Political events have further impacted the EUR/GBP exchange rate. In the UK, the election of Prime Minister Keir Starmer in July 2024 initially brought political stability and bolstered investor confidence. However, subsequent fiscal policies, including significant tax increases, led to a depreciation of the pound against major currencies, including the euro. In the Eurozone, political uncertainties in countries like France and Germany have posed challenges for the euro, affecting its performance against the pound. (fxopen.com)

Technical Analysis

Technical indicators provide additional insights into the EUR/GBP pair's movements. As of June 25, 2025, the 20-day exponential moving average (EMA) stands at 0.8499, while the 50-day EMA is at 0.8469, both suggesting a bullish trend. The Relative Strength Index (RSI) is at 51.5767, indicating neutral market conditions. These technical factors suggest potential upward momentum for the euro against the pound in the short term. (tipranks.com)

Future Outlook

Looking ahead, the EUR/GBP exchange rate is expected to be influenced by several factors:

• Monetary Policy Decisions: Any changes in interest rates or monetary policies by the ECB or BoE will likely impact the exchange rate.

• Economic Indicators: Data such as GDP growth, inflation rates, and employment figures from both regions will play a role in determining currency strength.

• Political Events: Developments such as trade negotiations, policy changes, and political stability will continue to influence investor sentiment and currency valuations.

In summary, the EUR/GBP exchange rate has been shaped by a complex interplay of monetary policies, economic performances, and political developments. Investors and market participants should closely monitor these factors to make informed decisions regarding this currency pair.