Pound v Euro in 2025 so far

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waterman
Written by Dan Waterman
February 27th 2025
With GBP continuing to hold at current levels this week, let's take a look at the Pounds performance so far this year..

For much of Q4 last year, GBP v EUR was rather 'stagnant', trading around its multi-year long psychological barrier of 1.20. This didn't last long when as we entered 2025 though, as within 2-weeks, almost 2% was wiped from its valuation.

January proved to be a tough month for the Pound across the board, mainly due to UK growth concerns, its debt and the new Government's handling of the situation. Still, with mid-market hovering around the 1.18 mark at the time, it still presented one of the best times since August 2022 to buy the Euro.

In fact, the 'stagnant' period we saw from September - December last year, was the best time to exchange since the Brexit vote back in the middle of 2016. Well done to those who acted at this time.

Currently, £-€ is up 3.5% since this time last year, meaning on a £200,000 transfer, customers are helping themselves to €8,500 more

In just the last month's trading (the middle of the dip), the same transfer to Euros has gained customers a nice €5,000 payday if they act now (mainly due to the expected US trade tariffs on Europe).

Overall, Sterling is very 'strong' versus the Euro right now and compared to the previous 9-years and things may even increase some more as the year progresses.

Note - This will largely be 'interest rate divergence' related, so if the Bank of England start cutting rates more and faster than expected, things will not look as 'rosy' as they do now. This is where hedging and Forward Contracts help alleviate that risk, you can read more about them in our blogs below.