Noticias de la Cámara

GBP/EUR retreats from 18-month high

17/04/2024 bannersnikitas2

Trade in the pound euro exchange rate was erratic in February, with the pairing briefly striking an 18-month high, before ending the month broadly lower.  

What happened last month?

A dovish shift by the European Central Bank acted as a key headwind for the euro in recent weeks. With many ECB policymakers offering their thoughts on when the bank should begin cutting interest rates.

The single currency’s negative correlation with the US dollar also applied pressure to EUR exchange rates through the first half of February, amid notable USD demand.

EUR sentiment strengthened later in the month as Eurozone data began to improve, but the euro’s upside potential was kept in check amid growing fears that Germany faces a recession.

The pound traded erratically February, in response to the Bank of England’s latest interest rate decision and some uneven UK economic data releases.

While the BoE pushed back against rate cut speculation following its latest policy meeting, the bank finally dropped its pretence that its next move could be an interest rate hike.

On the data front, Sterling spiked in response to an upbeat jobs report, with GBP/EUR even being carried to an 18-month high.

However, these gains were erased almost immediately, as confirmation the UK slipped into a recession in the second half of 2023, in addition to a weaker-than-expected inflation print, stoked BoE rate cut speculation.

GBP/EUR forecast

Looking ahead, both the ECB and BoE are set to meet in March. No policy changes are expected this month, but the language used by both banks will be scrutinised by investors for any hints to when they might begin cutting interest rates. 

Likewise, upcoming UK and Eurozone data will be watched closely to see how they might influence the central banks’ thinking on monetary policy. With any signs of cooling inflation and slowing economic growth potentially stoking rate cut bets.

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

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

Socios Corporativos

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