Looking to exchange pounds for euros in the near future? Or simply want to know where the GBP/EUR rate is headed through 2025 and into 2026? Here’s your live exchange rate, expert-backed forecasts for late 2025 and 2026, and practical tips to lock in better rates.
Live GBP to EUR Rate
Pound to Euro Forecast: Outlook for Late 2025 and 2026
The near-term outlook for GBP/EUR remains relatively muted. The pair is expected to stay range-bound, with downward pressures creeping in rather than strong upside.
Key themes:
- The European Central Bank (ECB) is closer to a policy easing phase than the Bank of England (BoE) in current market pricing.
- Growth in the UK is softening, while inflation remains elevated, reducing GBP’s appeal.
- The eurozone is showing signs of stabilisation and inflation moving nearer target levels, which supports EUR strength.
Forecasts for End-2025
| Forecast source | Rate (GBP → EUR) | Notes |
|---|---|---|
| LongForecast | ~€1.119 by December 2025. EFA Forecast | Gradual decline from current levels. |
| KeyCurrency | Drop to ~€1.11 by January 2026. Key Currency | Indicates downside risk through late year. |
| CurrencyNews/MUFG | Slide to ~€1.11 by Q3 2026. Currency News | Signals longer-term weakening rather than immediate rebound. |
What is the Pound to Euro Forecast?
We expect modest downside risk for GBP/EUR by end-2025. A realistic target range might be €1.12-€1.15, with downside toward €1.11 if UK data disappoints.
2026 Forecasts
Current forecasts suggest gradual erosion of GBP’s value against EUR rather than sharp moves.
- LongForecast envisions a year-average of ~€1.108 ending near €1.076 by December 2026. EFA Forecast
- KeyCurrency sees potential for €1.11 by early 2026.
- CurrencyNews/MUFG also project ~€1.11 for the pair by Q3-Q4 2026.
- Meanwhile, the eurozone outlook shows inflation edging toward 2 % and growth holding up. Vanguard
Cambridge Currencies’ view: For high-value users (property payments, business transfers) consider the range €1.10-€1.14 throughout 2026, with potential dips under €1.11 if UK data lags further.
Key Drivers Impacting GBP/EUR Outlook (2025–2026)
1. Central Bank Divergence
- The ECB is expected to cut rates earlier than the Bank of England
- Markets anticipate 60–110 bps in rate cuts across both central banks
- GBP may lose some yield advantage in this environment
2. Safe-Haven Demand
- The euro benefits during periods of global risk aversion
- Political or geopolitical instability (e.g., trade tensions, Middle East issues) may push flows into the EUR
3. Economic Data
- UK: Robust GDP in early 2025, but consumer demand is slowing
- Eurozone: Slower growth, but inflation is stabilizing, supporting confidence
4. Geopolitical Risks
- Risk-off sentiment from events such as:
- Trade policies from the Trump administration
- Middle East instability
- Broader global uncertainty
Why the Pound Was Strong in Early 2025
Despite a cautious outlook for late 2025, the pound rallied earlier in the year. Reasons include:
- Falling UK inflation faster than Eurozone’s
- BoE’s hawkish stance: “Higher for longer” interest rates
- Stronger UK GDP and labor market
- Improved investor risk appetite in Q2 2025
However, by October, sentiment shifted as:
- ECB cuts were priced in
- Risk appetite faltered due to geopolitical flare-ups
Best Practices for Exchanging GBP to EUR
Here are expert tips to optimize your GBP to EUR conversions:
- Avoid airport exchanges: Rates can be 5–10% worse
- Compare providers: Use rate comparison tools for best FX deals
- Use forward contracts: Lock in today’s rate for future transfers
- Avoid dynamic currency conversion: Always pay in local currency abroad
- Time large transfers: Watch key levels like €1.16; use alerts
FAQs – Pound to Euro
What is the current GBP/EUR rate?
At 20:34 GMT on 16 Nov 2025 the mid-market quote was ~€1.1305 per £1.
Will the pound get stronger by end-2025?
Most projections suggest modest weakening rather than a rebound. End-2025 targets are ~€1.12-€1.15, possibly falling toward €1.11.
Is now a good time to convert pounds to euros?
If you have a payment in the near term, rates ~€1.13 are broadly aligned with forecasts. If you expect payments in 6-12 months and can tolerate some currency risk, you might hold or set a forward contract.
What about 2026?
Expect mild drift lower: average rates ~€1.10-€1.14, with potential drops under €1.11 depending on UK vs eurozone data and policy moves.
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