EUR/GBP extends gains as BoE dovish tone and fiscal concerns weigh on Sterling
|- EUR/GBP extends its advance for the second day as BoE’s Dhingra strikes a dovish tone.
- Softer UK inflation data fuels expectations of a BoE rate cut before year-end.
- Fiscal worries ahead of Chancellor Reeves’ November budget keep Sterling under pressure.
The Euro (EUR) edges higher against the British Pound (GBP) on Thursday, with EUR/GBP extending gains for the second straight day in subdued trading after Bank of England (BoE) policymaker Swati Dhingra struck a dovish note.
At the time of writing, EUR/GBP is trading around the 0.8700 psychological mark, bouncing off an intraday low near 0.8681 as traders remain cautious ahead of a busy session on Friday.
Market activity stayed quiet as neither the UK nor the Eurozone released major data on Thursday. Investors are instead looking ahead to fresh catalysts from the UK GfK Consumer Confidence index, Retail Sales, and S&P Global preliminary Purchasing Managers Index (PMI), alongside the Eurozone’s HCOB flash PMIs, which are expected to shed light on economic momentum heading into the final quarter of 2025.
In a speech at the Central Bank of Ireland, BoE Monetary Policy Committee (MPC) member Swati Dhingra warned that rising US tariffs and global trade frictions are weighing on UK demand, putting downward pressure on inflation. She also cautioned that keeping interest rates “excessively high” for too long could damage investment and productivity.
Her remarks came just a day after the UK Consumer Price Index (CPI) data showed headline inflation steady at 3.8% in September, below the 4.0% forecast, while core inflation eased to 3.5% and services inflation remained at 4.7%. The softer figures, combined with Dhingra’s comments, have boosted expectations that the BoE could begin cutting rates before year-end.
Money markets now price around a 75% chance of a 25-basis-point rate cut in December, with the November meeting expected to see no change.
Beyond monetary policy, fiscal concerns are adding further pressure on the Pound. UK Chancellor Rachel Reeves faces a widening fiscal gap estimated at up to £30 billion, heightening uncertainty ahead of the 29 November autumn budget. Markets remain cautious that the government may be forced to announce tax hikes or spending restraint to stabilise public finances. Such measures could further dampen growth prospects and investor confidence, keeping Sterling vulnerable in the near term.
Pound Sterling Price Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.02% | 0.13% | 0.46% | -0.06% | -0.33% | -0.15% | 0.06% | |
| EUR | -0.02% | 0.11% | 0.44% | -0.08% | -0.34% | -0.18% | 0.04% | |
| GBP | -0.13% | -0.11% | 0.33% | -0.18% | -0.45% | -0.29% | -0.07% | |
| JPY | -0.46% | -0.44% | -0.33% | -0.51% | -0.76% | -0.62% | -0.38% | |
| CAD | 0.06% | 0.08% | 0.18% | 0.51% | -0.26% | -0.10% | 0.12% | |
| AUD | 0.33% | 0.34% | 0.45% | 0.76% | 0.26% | 0.17% | 0.39% | |
| NZD | 0.15% | 0.18% | 0.29% | 0.62% | 0.10% | -0.17% | 0.22% | |
| CHF | -0.06% | -0.04% | 0.07% | 0.38% | -0.12% | -0.39% | -0.22% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.