Euro‑British Pound Pair Faces Continued Pressure Amid Fed‑Related Uncertainty

The Euro/GBP cross has slipped to 0.8739 as of the close on 6 December 2025, a level that sits well below its 52‑week high of 0.8835 but still comfortably above the 52‑week low of 0.8035. The decline reflects a broader trend of softness in the Euro against the Pound, a currency that has remained resilient since the UK Autumn Budget.

Fed Rate Hike Concerns and PCE Data

The central focus for traders remains the U.S. Federal Reserve’s policy meeting scheduled for the following week. Recent personal consumption expenditures (PCE) figures, released by U.S. authorities, have reinforced expectations of a rate cut rather than a hike. In the weeks leading up to the Fed announcement, U.S. stock indices delivered modest gains, buoyed by the continued anticipation that the Fed will ease policy to support growth.

However, the European markets have responded with cautious sentiment. While European equities have posted gains, the optimism has not translated into a stronger Euro, partly because the Pound has benefited from a tighter monetary stance in the United Kingdom. The Bank of England has maintained a higher policy rate, providing a relative advantage for the Pound against the Euro.

Market Activity in Asia and Europe

Asian equity markets opened without a clear direction on 8 December 2025, with participants adopting a wait‑and‑see approach ahead of the Fed decision. The lack of a unified trend underscores the uncertainty that remains in global markets as traders weigh the implications of U.S. policy for both the Euro and the Pound.

In Europe, the sentiment has been largely supportive of the Euro, particularly in the automotive and semiconductor sectors, which have continued to attract investment. Nonetheless, the currency’s performance has been muted by the broader backdrop of U.S. economic data and the potential for monetary easing.

Technical Snapshot

  • Current level: 0.8739
  • 52‑week high: 0.8835 (18 November 2025)
  • 52‑week low: 0.8035 (24 December 2024)

The pair remains below its recent peak, suggesting that the Euro may continue to face headwinds as long as the Pound benefits from a relatively tighter stance. A decisive move by the Fed—whether a rate cut or a pause—will likely serve as the catalyst that could either confirm a reversal or extend the current trend.

Outlook

Market participants will closely monitor the Fed’s minutes and the forthcoming policy decision. A rate cut could provide a lift for the Euro, whereas a dovish stance from the Bank of England could further strengthen the Pound. As of now, the Euro/GBP pair remains under pressure, with traders awaiting clearer signals from both sides of the Atlantic.