GBP EUR Exchange Rate Predictions Diverge as Sterling Holds Steady

Foreign exchange analysts at ING and UBS have released their predictions for the British Pound to Euro (GBP/EUR) exchange rate. According to ING, the current levels around 1.1650 are expected to hold in the near term, while UBS forecasts a 2.1% rise to 1.19 by the end of 2026.

The two calls point to limited immediate momentum followed by a stronger Pound move before December. ING expressed its forecast in EUR/GBP terms, expecting 0.8580-0.8610 to contain the pair for now. This is equivalent to an GBP/EUR band of approximately 1.1614-1.1655, placing the latest rate close to its upper boundary.

UBS takes a more constructive medium-term view, forecasting GBP/EUR at 1.19 in December 2026. The bank then expects the pair to ease to 1.18 in March 2027 and remain at that level through June and September. This suggests most of the expected Sterling appreciation is concentrated in the closing months of 2026.