Noticias de la Cámara

GBP/EUR climbs to six-month high on lacklustre Eurozone data

06/02/2024 currenciessdirectslogo

The pound euro exchange rate got off to a roaring start in 2024, with the pairing climbing to its highest levels since August as a string of underwhelming Eurozone data releases dragged on EUR.

What happened last month?

The euro has gotten off to a pretty dreadful start in 2024, with a clear EUR selling bias emerging from the start of January.

This downturn in the single currency was linked to some disappointing Eurozone data releases and was further reinforced by its negative correlation with the US dollar.

Some support for the euro came in response to some hawkish commentary from European Central Bank (ECB) officials throughout the month. Although this quickly unravelled amid disappointment that the ECB didn’t do more to push back against rate cut speculation following its first policy meeting of the year. 

The pound trended broadly higher through the month of January, but it was far from plain sailing for the currency.

Uneven UK data was a key source of volatility for Sterling. While stronger-than-expected service sector growth and a surprise acceleration in inflation reflected positively on GBP exchange rates, the pound also faced headwinds as underwhelming GDP and retail sales figures stoked UK recession fears. 

So far in February the pound is off to an erratic start, following some mixed messages from the Bank of England (BoE) in the wake of its first policy meeting of 2024.

GBP/EUR forecast

Markets will keep a close eye on upcoming UK and Eurozone economic data over the coming month.

Although the Eurozone appears to have narrowly avoided slipping into a recession, the outlook for the bloc remains fairly bleak. If EUR data continues to disappoint it might raise questions over the Eurozone’s economic trajectory in 2024, as well as placing more pressure on the ECB to begin loosening its monetary policy.

In terms of GBP data, the focus will be on whether or not the UK slipped into a recession in the second half of 2023. The UK’s latest GDP figures will be published in the second week of February and could place significant pressure on the pound if they confirm growth contracted for a second consecutive quarter.

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

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

Socios Corporativos

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