The Pound to Euro exchange rate is experiencing a mild upswing – and the trend looks set to continue. Despite fading global equity volatility and ongoing inflation concerns, stronger UK-EU ties are lifting sterling sentiment.
Pound Strengthens as UK and EU Near Trade Agreement
A major reset in UK-EU relations is on the horizon, with both sides expected to announce a new agreement that improves trade flows and cooperation.
Historically, the Pound tends to perform better when the UK is seen as closely aligned with Europe – and markets are responding accordingly.
This renewed optimism around trade and political stability is helping to support sterling’s recent gains against the euro.
Dollar Peaks Then Retreats Post US-China Deal
The US dollar initially rallied following the announcement of the US-China tariff deal. However, as the week progressed, those gains faded.
The greenback has since settled into a more stable, range-bound pattern, with markets awaiting further cues on US policy and economic direction.
Key Focus: May Flash PMI Data and Central Bank Insights
Looking ahead, the big market driver in the coming week will be the release of May’s flash PMI readings across major developed economies.
In the Eurozone, additional data includes several sentiment polls and the much-anticipated ECB Monetary Policy Meeting minutes.
These releases will offer insight into how businesses and consumers are faring amid ongoing inflationary pressures and slowing growth concerns.
Busy Data Week for the UK
The UK also has a packed calendar, with reports due on inflation, retail sales, and consumer sentiment.
Each of these indicators will be closely watched to gauge economic resilience – and could play a role in shaping the next move for sterling.
Stay Ahead with Qu Money
As major economic releases and political resets unfold, it’s essential to keep a close eye on currency trends.
Whether you’re hedging risk or seeking opportunity, our team at Qu Money is here to help you navigate market volatility with confidence.