If you want to successfully invest and trade pounds to euros on the currency market, you must analyze the pound-to-euro forecast and factors influencing rates.

In this piece of writing, we show you the pound-to-euro forecast for the next six months, explaining the factors that affect the GBP to EUR exchange rates.

By observing the pound to euro rates live and keeping up with the last pound to euro news, traders can make better decisions.

The European Central Bank and the Bank of England (BoE) are crucial factors in shaping the GBP to EUR price forecast. Their monetary strategies and policies on rate cuts directly impact the Forex market. In this article, we show you how these institutions impact the euro exchange rate and what the latest developments mean for the pound-to the euro exchange rate.

You also need to stay informed with the latest GBP exchange rate updates and predictions from leading investment banks. Gaining insight into the inverse rate eur to GBP can help you grasp the state of the market. This thorough forecast will provide you with the information you need to make wise financial decisions, whether you are planning long-term plans or just looking at the GBP to eur exchange rate right now.

Pound To Euro 2024 Forecast Overview

In general, the Pound has been gaining strength against the Euro in 2024. In July 2024, the Pound reached its highest level against the Euro in 23 months. It has been the top-performing major currency in the first half of the year.

Here is a brief overview of the recent developments in the Pound to Euro exchange rate:

Inflation and interest rates have been the main factors influencing exchange rates in the last two years.

The Bank of England has raised interest rates more aggressively compared to the European Central Bank.

This has had a positive impact on the Pound in 2023 and 2024. Higher interest rates attract foreign investment, leading to increased demand for a currency. Increased demand results in a higher value for the currency.

The drawback to higher interest rates is that it harms economic growth.

Economic growth has been marginally weaker in the UK compared to Europe, which looks set to continue in 2024.

GBP to EUR  Today

At the time of this writing, GBP to EUR exchange rate equals 1.164 Euros for 1 Pound. Today’s rate range: 1.1607–1.1652. The closing price of the previous day: 1.1881. The variation was -0.0010, -0.08%.

GBP to EUR forecast – exchange rate August 2024

Worst GBP to EUR exchange rate in August 2024: £1 = €1.1615Best GBP to EUR exchange rate in August 2024: £1 = €1.1801Average GBP to EUR exchange rate in August 2024: £1 = €1.1701

Pound to Euro Weekly Forecast

Pound to Euro 52 WEEK RANGE is 1.1403–1.1929. Overall forecast is that the GBP to EUR exchange rate will dip further before levelling out above the 1.17-1.1730 span.

When it comes to pound to euro week ahead forecast it’s a rather common sense approach. Narrow your research down to a few essential things. 

There are several fundamental factors affecting pound sterling to euro rates. To get a quick overview, check some of the economic calendars that list weekly economic news. 

It’s an excellent way to get info about current trends in Pound to Euro exchange rates. Also, you can rely on the trendline and benefit from favorable market moves.

Sometimes, ups and downs occur due to the collective behavior of traders selling and buying in a speculative way. 

Finally, you can rely on narrow term ranges and try not to be greedy.

Pound to Euro Forecast For the Next 6 Months

The GBP/EUR rate is up +1.66% in 2024. A weekly change in the Pound to Euro exchange rate of 1% could be significant. However, fluctuations of 5% or more are not unusual over a period of six months. There’s only a bigger chance that anything noteworthy will occur the longer the period.

But if you don’t have a set period in mind, when should you convert your money? There’s always something to put off.

We frequently hear statements like “I’ll wait for it to rise some more; The Pound is getting stronger.” I’ll wait for the Pound to regain strength because it’s weakening.

Our realistic recommendation would be to base your decision on previous benchmarks. Examine a GBP/EUR chart with several timeframes first. The rate last traded at these levels when?

In comparison to the previous five years, how high or low is the rate?

For what period has the present trend been in place?

To capitalize on favorable changes, you don’t need to become an expert on Wall Street.

Is it a good time to buy Euros in pounds?

Comparing the current Pound to Euro exchange rate with historical data is a useful technique for interpreting it. 2024 is a favorable year to buy euros because the pound-to euro rate is above its five-year average. 

Over the previous five years:

The average exchange rate between pounds and euros has been €1.1509. 
The rate at which the pound to Euro peaked was €1.2106 on April 14, 22.
On March 20, the lowest point of the pound to euro exchange rate was €1.0681.

In other words, the average rate of GBP/EUR has been higher than exchange rate 1.155 recently.

Any rate higher than average could be an excellent opportunity to use your pounds to purchase euros. The greater the rate, the better if you are buying euros.

How do you explain the variations of the pound sterling?

The pound sterling is one of the most traded currencies in the world. Its influence comes from a combination of internal and external factors. Some of these factors are predictable, while others are unforeseen. They often emanate from global crises or unexpected events.

UK Economic Policy

The monetary and fiscal policies adopted by the UK government directly impact the pound sterling’s value. When the Bank of England raises interest rates, this tends to attract foreign investors looking for better returns. Conversely, lower interest rates can deter these same investors.

Economic performance

The general economic health of the UK is closely monitored by foreign exchange market participants. Indicators such as GDP growth, unemployment rate, and trade balance can influence the value of the pound sterling. A healthy economy generally increases confidence in the currency, while a recession or economic slowdown can have the opposite effect.

External factors affecting the pound sterling

Although internal factors are predominant, the pound sterling is not isolated from the rest of the world. It also responds to a variety of global events and trends.

Trade relations

The UK’s trade relations with other countries can influence the demand for the pound sterling. If the UK exports more, the demand for the pound sterling will increase, which could strengthen its value.

Comparison with other currencies

The value of the pound sterling is often compared to other major currencies, such as the US dollar, the Euro or the Japanese yen. When these currencies strengthen or weaken, this can have an impact on the pound sterling.