GBP v EUR hits a fresh 6-month high!

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waterman

Written by Dan Waterman
February 4th 2026
£-€ hits highest point since August 2025..

Is the Pounds resurgence against the Euro actually now seriously underway?

I very highly doubt it, would be a completely non-bias answer. A fair interpretation of the word 'resurgence' in this context would be back to the £-€18's+ mid-market, which is currently 2% away and was last hit back in June 2025.

If you zoom out, GBP v EUR is still below the 2/3/5/7+ year average and upside from here is extremely limited. The 3%+ bounce we have seen in the last 3-months is largely due to the Autumn Budget outcome, as was the weak performance leading up to it. £-€ looks like it is balancing itself out.

70% of forecasters we follow are suggesting a weaker £-€ in 2026 and the current good form of the pair has not changed that (yet?). Hardly anyone we follow seriously expect anything above £-€1.18 this year.

I'm just managing expectations here for those of you hoping, expecting or just holding out for a bit more to come. The variables currently at play and any new entrants are likely to hurt UK/GBP than EU/EUR.

Still, things are looking positive right now and the pair continues to gradually move upwards. Let's see if the BoE tomorrow will help it further..