The Euro to Pound (EUR/GBP) exchange rate is trading around 0.8506 after a sharp Sterling rally pushed the pair to its lowest levels since earlier this year. EUR/GBP has fallen from the 0.86 area at the start of July to a low near 0.8455 before recovering modestly.
Euro to Pound (EUR/GBP): 0.850942 (+0.20%)
Pound to Dollar (GBP/USD): 1.34433 (-0.25%)
Euro to Dollar (EUR/USD): 1.143946 (-0.04%)
ING believes the recent Pound surge has been driven largely by positioning adjustments rather than a fundamental reassessment of the UK economy, leaving Sterling vulnerable to a reversal.
The bank notes that the Pound’s rally followed a major unwinding of short positions, with investors previously holding their largest bearish Sterling exposure since 2017.
According to ING, EUR/GBP at current levels remains around 1.5% undervalued according to its short-term fair value model.
The bank argues that low FX volatility is masking potential risks across currency markets, with compressed volatility encouraging carry trades and allowing recent trends to persist. However, ING warns that volatility could rise from current historically low levels.
For Sterling, the key risk is that the short-covering boost fades. ING expects EUR/GBP to recover towards 0.8700 by the end of the summer as markets return focus to UK fundamentals and Bank of England expectations.
The bank also believes front-end UK rate pricing looks too aggressive, with markets currently pricing around 35 basis points of tightening by year-end despite ING’s view that the Bank of England is more likely to remain on hold.
A sustained break above the recent EUR/GBP lows may therefore prove difficult to maintain as the impact of positioning shifts begins to fade.
Pound Sterling Prices: This Week
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.06% | -0.23% | +0.03% | -1.07% | -0.56% | -1.42% | +0.02% | |
| EUR | +0.06% | -0.17% | +0.09% | -1.01% | -0.50% | -1.36% | +0.08% | |
| GBP | +0.23% | +0.17% | +0.26% | -0.84% | -0.33% | -1.19% | +0.25% | |
| JPY | -0.03% | -0.09% | -0.26% | -1.09% | -0.59% | -1.45% | -0.01% | |
| CAD | +1.08% | +1.02% | +0.85% | +1.11% | +0.51% | -0.36% | +1.10% | |
| AUD | +0.56% | +0.50% | +0.33% | +0.59% | -0.51% | -0.86% | +0.58% | |
| NZD | +1.44% | +1.38% | +1.21% | +1.47% | +0.36% | +0.87% | +1.46% | |
| CHF | -0.02% | -0.08% | -0.25% | +0.01% | -1.09% | -0.58% | -1.44% |
The FX heat map compares how Pound Sterling (GBP) has performed against a basket of major currencies over the past week. The largest move was against the New Zealand Dollar, where Pound Sterling recorded its sharpest decline. Data comparing prices today (17/07/2026 15:49 UTC) and daily close on 10/07/2026.
To read the table, choose the base currency from the left-hand column and then move across to the quote currency along the top row. For example, the GBP row and USD column shows the weekly percentage move in GBP/USD.
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