Noticias de la Cámara

Currencies direct | GBP/EUR bolstered by renewed UK economic optimism

03/06/2025 currenciessdirects1052x700s2_1

The pound euro exchange rate maintained a positive trajectory through May, with the pairing being propelled to a new eight-week high amid a more optimistic outlook for the UK economy.

What happened last month?

The pound enjoyed notable support over the past month, with GBP investors growing increasingly bullish through May.

Underpinning GBP exchange rates through the first part of the month was the Bank of England's (BoE) latest interest rate decision.

While the bank delivered a 25 basis point cut rate as expected, investors were surprised by the hawkish tilt to the bank's forward guidance, which emphasised a cautious and gradual approach to further easing.

Renewed UK economic optimism then helped to accelerate the pound's gains.

In addition to data confirming that the UK was the fastest-growing G7 country at the start of 2025, this optimism was bolstered by the UK's new trade agreements with India, the US, and the EU.

In contrast, the euro stumbled through the first half of May, with these early losses being driven in part by the single currency's negative correlation with the US dollar.

Adding to the pressure on EUR exchange rates was political uncertainty in Germany, following Friedrich Merz's initial failure to secure a parliamentary majority in the first round of voting for the chancellorship, which highlighted political divisions within the Eurozone's largest economy.

The subsequent pullback in the US dollar paved the way for the euro to rebound in the latter half of the month.

However, the euro's recovery wasn't without its hurdles. A downwards revision to Eurozone GDP in Q1, weaker-than-expected PMIs, and fresh transatlantic trade tensions all tempered demand for the euro over the past couple of weeks.

GBP/EUR forecast

A renewed focus on US trade policy could infuse fresh volatility into the FX market in the coming weeks.

Recent threats from US President Donald Trump show how the EU is acutely exposed to US tariffs. While the EU may have won a reprieve from Trump’s latest threat to impose 50% tariffs from the start of June, the risks posed to the Eurozone’s economic outlook could still hamper the euro.  

Meanwhile, the latest interest rate decisions by the European Central Bank (ECB) and BoE will also be a focus. A cautious outlook from either bank could weaken their respective currencies.

If you need to move money to or from Spain, Currencies Direct can help you save time and money with excellent exchange rates, no transfer fees and multi-award-winning customer service.

You can learn more about how Currencies Direct could help you to maximise the returns on your international transfers here or by contacting ignacio.o@currenciesdirect.com at +34 952 906 581.


Socios Patrón

  • Brico Depôt
  • HSBC Bank
  • CFP Energy
  • Hays España
  • Santander
  • Mondragon Corporación
  • Telefónica
  • AstraZeneca
  • Diageo
  • Gleeds Ibérica
  • Arriva a DB Company
  • Iberdrola
  • Oxford University Press
  • Canon
  • Selier Abogados
  • Banco Sabadell
  • Pearson
  • Savills
  • Cuatrecasas
  • JCB
  • PwC
  • Mitie
  • El Corte Inglés
  • EAE Business School
  • Plain Concepts
  • Sage
  • GSK

Socios Corporativos

  • McArthurGlen Designer Outlet Málaga
  • Spectrum IFA Group
  • Adlanter
  • Currencies Direct
  • Forvis Mazars
  • Safetykleen
  • Dukes Education
  • AFI, Analistas Financieros Internacionales
  • Brunswick Group
  • H10 Hotels
  • A&O Shearman
  • Grupo Hospitalario HLA
  • Sacyr
  • Haleon
  • Segro Spain Management
  • Smith & Nephew
  • Colt Technology Services
  • Agencia de Innovación y Desarrollo de Andalucía IDEA
  • BT Global Services
  • EY
  • Brand Finance
  • CaixaBank
  • Gamma
  • Holiday World Resort
  • Menzies LLP
  • Cognita Schools
  • Rentokil Initial
  • Parque Tecnológico de Andalucía
  • Barrilero & Asociados
  • Berkeley Energía
  • ERM
  • Croda Ibérica
  • Value Retail
  • Mazars
  • Iberia Cards
  • CMAC Group
  • Gómez-Acebo & Pombo
  • Bunzl Distribution Spain
  • Ferrovial
  • Presstour
  • Derby Hotels Collection
  • MARCO Agency
  • ACS
  • De Cotta McKenna y Santafé
  • Gilmar Real Estate
  • Arup
  • Flutter
  • Indra Group
  • British Council
  • Vueling Airlines
  • EGD Logistics
  • Boult Wade Tennant
  • Lightsource bp
  • Oak House School
  • Cubico Sustainable Investments
  • Ayming España
  • Roman
  • PageGroup
  • Firefly
  • Allergy Therapeutics Iberica
  • Baker Tilly
  • Barclays
  • UAL Awarding Body
  • Aon España
  • ISP Schools
  • Cabrera Rodriguez ETL Global
  • HM International Patient
  • Globeducate British International School
  • Grant Thornton
  • David Lloyd
  • Lloyd’s Insurance Company SA, Sucursal en España
  • BDO
  • Kreab Worldwide
  • Panorama Properties
  • Kensington School
  • Control Group
  • Uhy Fay & Co
  • Schüco
  • Quantexa
  • Araex Grands
  • PKF Attest
  • TSL Projects Spain
  • IQS