GBP/EUR exchange rate week review: pound hits 10-week high versus euro
05/01/2026 to 09/01/2026: The pound euro rate enjoyed a strong start to 2026, briefly touching a 10-week high as geopolitical forces weighed heavily on the single currency.
Monday
The pound euro (GBP/EUR) exchange rate climbed to a 10-week high in the 1.15 mid-range as the potential global implications of the US intervention in Venezuela weighed on the single currency. The move also prompted investors to view Donald Trump’s repeated remarks about Greenland in a new light.
The euro was pressured further as investors reassessed geopolitical risks surrounding the Russia–Ukraine conflict.
The pound edged up after Prime Minister Keir Starmer indicated plans to strengthen trade ties with the European Union. Investors in the UK currency welcomed his comments on closer EU alignment, viewing improved relations as positive for UK growth and investment.
Tuesday
The pair traded without a clear direction amid downward pressure on both the pound and euro.
The UK currency softened after the UK’s final services PMI for December missed forecasts, dampening investor sentiment. The index was revised down to 51.4 from 52.1, indicating modest growth in the UK’s powerhouse services sector late last year.
Ongoing tensions between the US and the EU regarding Greenland undermined the single currency. This was compounded by a sharper-than-forecast slowdown in German inflation.
Wednesday
The pound edged lower against the euro as a lack of UK data left the UK currency exposed to mild selling pressure.
The single currency was subdued following the release of a mixed Eurozone consumer price index. Despite core inflation being slightly lower than expected, it failed to reflect the recent sharp slowdown observed in German inflation, limiting the euro’s upside.
Thursday
The pound continued to drift lower as market-moving UK data remained sparse.
The UK currency faced additional pressure as the retail sector sent mixed messages during the Christmas period. Many businesses observed that weak consumer confidence made households hesitant to purchase non-essential goods.
The euro firmed after investors in the single currency were buoyed by a surprisingly robust German factory orders print. Orders grew by 5.6% in November, prompting economists to speculate that the Eurozone’s largest economy may be recovering after a prolonged industrial downturn.
Friday
The ongoing UK data lull meant the pound traded without a clear direction.
Euro investors digested mixed economic indicators. Germany’s latest trade data revealed an unexpected fall in exports during November, while Eurozone Retail sales rose despite a cautious consumer backdrop.
The pound euro exchange rate ended the week around 1.152.
Looking ahead
Pound investors will be monitoring UK unemployment figures for November on Tuesday.
Germany’s final estimate of its December CPI hits the headlines on Friday. The print could influence the European Central Bank’s thinking on interest rates.