The GBP to EUR exchange rate shows a bearish bias in the near term.
Key drivers include the expected interest rate cuts from the Bank of England as inflation declines, which may weaken the pound. The European Central Bank's flexible policy in response to economic data could support the euro's position. Additionally, economic growth projections for the Eurozone indicate a stronger outlook compared to the UK, influencing currency dynamics.
The near-term trading range for GBP/EUR is likely to remain stable, reflecting recent price continuity.
An upside risk for the pound could arise from unexpected positive economic data in the UK, while the downside risk may stem from further fiscal concerns affecting the UK economy. Oil prices, currently volatile and below their three-month average, may also impact the euro's strength, especially in relation to inflation and trade dynamics.