If you’re planning to send money from the UK to Europe or vice versa next month, here’s a simple breakdown of what’s happening with the British Pound (GBP) and the Euro (EUR), and what you can expect in December 2025.
GBP to EUR: Where It Stands
A quick overview of the latest position of the pound against the euro.
GBP to EUR is sitting on the weaker side, with the pound under pressure due to UK fiscal worries and expectations of earlier Bank of England rate cuts. At the same time, the euro is holding steady. Markets are currently more comfortable buying euros than pounds, which is why GBP to EUR has been drifting lower and struggling to recover.
What’s Driving GBP to EUR?
The biggest driver is UK fiscal uncertainty. Reports of abandoned tax plans and concerns about the government budget make investors uneasy, and a weak budget outlook tends to weaken the pound.
Two other key factors matter:
Central bank expectations. Markets expect the Bank of England to cut interest rates earlier and more aggressively than the European Central Bank. Lower rates usually weaken a currency, so this view pressures the pound.
Economic data. Recent UK data on manufacturing and growth has been disappointing. Eurozone data has been calm and stable. This creates a gap in confidence, with the euro looking slightly safer.
What Do the Charts Say?
Charts show euro strength and pound weakness overall. EUR to GBP has strong support near 0.8735 to 0.8755, which is the same as resistance for GBP to EUR around 1.14. If the euro stays above that zone, the trend favors further pound weakness.
Next important levels:
GBP support for a recovery: 1.1450 to 1.1500. If GBP rises above these, momentum could turn more positive.
GBP risk zone: 1.1250 to 1.1350. If the pound falls below these, it could slide further.
Live GBP/EUR Chart
What to Watch in December 2025
A short checklist of the most important upcoming events.
UK budget announcements. This is the biggest driver. A credible plan could support the pound. Any confusion or further reversals would hurt it.
Inflation numbers in both the UK and Eurozone. Hotter UK inflation would delay interest rate cuts and help GBP. Soft inflation would harm it.
Central bank comments, especially from the Bank of England. Any hint of faster rate cuts will pressure the pound.
Risks Ahead
Key risks that could shake the exchange rate.
UK political and fiscal uncertainty getting worse.
UK data showing weaker growth or deeper slowdown.
Stronger US dollar trends indirectly dragging GBP lower across all pairs.
A sudden shift in ECB messaging that boosts euro confidence.
What This Means If You’re Sending GBP to EUR Abroad
The trend is slightly against the pound. This means sending GBP to EUR could become more expensive if GBP weakens further. If you need to send money soon, the pound could slip before it strengthens. If you can wait, a more credible UK budget or stronger UK data later in the month may give the pound a small lift, offering slightly better rates.
In short
The pound remains under pressure, and the next month looks tilted toward euro strength unless the UK budget restores confidence. Expect some volatility. If you need certainty, acting sooner may avoid potential weaker GBP levels. If you can wait, watch for an improvement in UK fiscal signals that could support a mild GBP rebound.
