Author, Andrew Gibson Here’s our latest view on where Pound to Euro is headed and the factors driving the forward rate.
Pound to Euro Forecast
Our forecast: We expect the Pound to Euro exchange rate to remain close to €1.17 in the near term, but see greater risk of GBP/EUR falling towards €1.15 than rising above €1.20 during the remainder of 2026.
The Pound has performed well against the Euro in 2026.
GBP/EUR reached around €1.18 in July, its highest level for more than a year, before falling back towards €1.17.
One reason for Sterling’s strength has been interest rates.
The Bank of England’s base rate currently stands at 3.75%, compared with the European Central Bank’s deposit rate of 2.25%. Higher UK interest rates can make Sterling more attractive to international investors.
However, this advantage could narrow.
Inflation remains a concern across Europe and the European Central Bank has already raised interest rates once in 2026. If the ECB raises rates again, while the Bank of England keeps UK rates unchanged, this could provide greater support for the Euro.
There is also a question of how much good news is already reflected in the Pound.
At around €1.17, GBP/EUR is trading towards the upper end of its recent range. This makes another significant move higher increasingly difficult without a clear improvement in the UK economic outlook.
GBP to EUR Forecast at a Glance
How far the pound is expected to move against the euro, based on analyst forecasts as at 12 August 2026.
Will the Pound rise against the Euro?
Our view is that the Pound could remain relatively strong against the Euro in the short term, but we do not expect a sustained move above €1.20 during the remainder of 2026.
Instead, we think GBP/EUR is more likely to trade between €1.15 and €1.18, with a move back towards €1.15–€1.16 becoming more likely if the interest-rate gap between the UK and Eurozone narrows.
Our central forecast is for GBP/EUR to be around €1.15–€1.16 by the end of 2026.
Of course, currency forecasts are never certain. Inflation, interest rates, economic growth and political developments can quickly change the outlook.
If you would like to discuss the pound-to-euro outlook, market trends or the latest rates, simply request a quote below.
Is it a good time to buy Euros with Pounds?
A good way to view today’s Pound to Euro exchange rate is to compare it to past data. Sometimes you need to stand back a little to gain perspective.
In September 2026, the Pound to Euro rate is trading very close to its 5-year average. This makes it an OK (but not great) time to buy Euros with Pounds.
In the last 5 years:
- The Average for the Pound to Euro rate has been €1.1667.
- The High for the Pound to Euro rate was €1.2106 (14 Apr 2022).
- The Low for the Pound to Euro rate was €1.0681 (23 Mar 2020).
You could consider any rate above the average as a good time to buy Euros with your Pounds.
When you are a buyer of Euros, the higher the rate, the more more Euros you get for each Pound you have.
Bear in mind, exchange rates move every few seconds. So picking a good time to buy is important.
Whatever your timeframe, it’s always important to keep an eye on the rate and choose a favourable time to exchange your Pounds into Euros. If you get in touch, we can help you with this.
Need guidance on exchange rates?
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At Key Currency, we give you one-to-one assistance and work with you to achieve a better exchange rate. You can read more about us here.
We don’t want to exchange your money at the wrong time. A bad exchange rate could cost you a lot of extra money.
Instead, we will help exchange your money to your best advantage. We have a 5-star rating on Trustpilot, based on over 3,700 verified reviews.
Key Currency is an FCA-regulated Authorised Payment Institution (No. 753989), and as such, all money transfers are conducted through safeguarded client accounts. To compare our rates, or discuss Pound to Euro forecasts and current market trends, just request a free quote.