Pound-Euro Shock: Overnight Jump Followed by Calm

The Pound to Euro exchange rate (GBP/EUR) experienced fluctuations overnight into Thursday due to US trade developments, stabilizing during European trading.

As of the latest update, GBP/EUR was trading at €1.1941, little changed from the start of the European session but up from €1.1920 earlier.

The Euro (EUR) initially declined overnight, influenced by a stronger US Dollar (USD) following a legal setback to President Trump's tariff policies. However, the Euro regained ground once European markets opened on Thursday.

The USD's strength stemmed from optimism among investors following the court ruling, which challenged Trump's tariff authority without congressional approval. This boosted the 'Greenback' and put pressure on the Euro, although market commentators anticipate potential alternative strategies from the White House, maintaining uncertainty.

EUR movements were subdued as the Eurozone's economic calendar was light, with focus shifting to Friday's release of Germany's inflation data, which could influence expectations of ECB interest rate decisions.

Meanwhile, the Pound (GBP) remained stable on Thursday with limited trading activity due to the absence of significant UK economic data. It saw modest gains overnight following positive market sentiment from the US tariff ruling but lacked follow-through due to the lack of domestic catalysts.

Looking ahead, Germany's retail sales data and inflation figures will likely drive EUR movements, while GBP will continue to react to global market sentiment amid ongoing trade concerns.