The pound euro (GBP/EUR) exchange rate fell -0.07% on Friday, settling at €1.1497, recovering from a low of €1.1459 earlier in the day.
The pound weakened amid concerns over the UK’s economic outlook ahead of next month’s budget. A leading think tank urged Chancellor Rachel Reeves to raise income tax despite Labour’s pledge not to, as she faces a £20–30 billion fiscal gap. Inflation is still nearly double the BoE’s target, and growth is stagnating; sentiment remains cautious.
The euro rose after French President Macron reappointed Sebatien Lecornu as PM, helping stabilize the currency after earlier political turmoil.