Pound Plunges as German Business Confidence Soars

The Pound to Euro exchange rate hit a one-week low on Thursday as an unexpectedly strong improvement in German business confidence boosted demand for the single currency.

At the time of writing, GBP/EUR was trading at around €1.1627, edging slightly lower compared with the start of Thursday's session.

The Euro found some support on Thursday morning after Germany's latest IFO business climate index pointed to a notable improvement in corporate sentiment.

September's reading came in ahead of expectations, indicating that confidence among German businesses has climbed to its highest level since May 2023, despite renewed pressure from elevated energy prices.