Euro Holds Multi-Week Peak Amid UK Political Turmoil

Written by Sandra Leggero

Sandra Leggero has a background in financial markets, having spent more than 9 years in commodities trading for several European and Asian companies. She holds a degree in Economics from the University of Pavia and specializes in emerging markets.

, | Updated: February 11, 2026

Key Moments

EUR/GBP is trading just above 0.8700, close to a seven-week high around the 0.8745 area.
Mounting political pressure on UK Prime Minister Keir Starmer has been weighing on the Pound in recent sessions.
A hawkish tone from recent European Central Bank communications has underpinned the Euro despite a light data calendar.

EUR/GBP Holds Firm Near Recent Highs

The Euro (EUR) is slightly softer against the British Pound (GBP) on Wednesday, but the EUR/GBP pair continues to trade above the 0.8700 handle, retaining the bulk of its recent gains. The cross remains close to a seven-week high in the 0.8745 region, as investors respond to political developments in the United Kingdom and a supportive policy backdrop in the Eurozone.

UK Political Crisis Undermines Sterling

The Pound remains under broad pressure as a deepening political crisis in the UK intensifies calls for Prime Minister Keir Starmer to resign. According to news reports, new details have emerged regarding links between the UK’s ambassador to the US, Peter Mandelson, and convicted sex offender Jeffrey Epstein. These revelations have set off a chain of political consequences that have now reached Starmer, who is reportedly facing demands from members of his own cabinet to step down.

With no major UK economic releases in the first half of the week, the heightened political uncertainty has left the British currency among the weakest performers against other major peers. The lack of supportive domestic data has allowed political risk to dominate the Pound’s short-term direction.

ECB’s Hawkish Tone Supports the Euro

In contrast, the Euro has found support from the European Central Bank’s recent messaging. The ECB maintained a hawkish monetary policy stance last week, which has helped underpin the single currency despite a relatively quiet economic calendar in the Eurozone.

Comments from ECB officials have reinforced this backdrop. President Christine Lagarde expressed confidence that inflation would stabilize around 2%, downplaying the significance of recently released low Consumer Prices Index (CPI) readings. On Tuesday, Vice President Luis de Guindos stated that the latest appreciation of the Euro is “not dramatic,” aligning with expectations that interest rates will likely remain unchanged for an extended period.

Key UK Data Ahead: GDP and Manufacturing

Looking ahead to Thursday, markets will turn their attention to preliminary fourth-quarter Gross Domestic Product (GDP) data for the UK. Consensus expectations point to a modest slowdown in annualized growth to 1.2%, compared with 1.3% in the previous quarter. Additionally, Manufacturing Production for December is anticipated to have been flat.

Given the current negative bias toward the Pound, a stronger-than-expected outcome would be needed to alleviate the prevailing bearish pressure on GBP. In the absence of such a positive surprise, political risks and the relative policy advantage of the Eurozone could continue to favor EUR/GBP upside.

Pound Sterling Performance Against Major Currencies

The table below summarizes the percentage changes of the British Pound (GBP) against a set of major currencies this week. According to the data, the British Pound has shown its strongest relative performance against the US Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.84%	-0.64%	-2.71%	-1.09%	-1.35%	-0.69%	-1.43%
EUR	0.84%		0.20%	-1.94%	-0.25%	-0.51%	0.15%	-0.60%
GBP	0.64%	-0.20%		-1.82%	-0.45%	-0.71%	-0.05%	-0.80%
JPY	2.71%	1.94%	1.82%		1.71%	1.43%	2.13%	1.24%
CAD	1.09%	0.25%	0.45%	-1.71%		-0.16%	0.41%	-0.35%
AUD	1.35%	0.51%	0.71%	-1.43%	0.16%		0.66%	-0.09%
NZD	0.69%	-0.15%	0.05%	-2.13%	-0.41%	-0.66%		-0.75%
CHF	1.43%	0.60%	0.80%	-1.24%	0.35%	0.09%	0.75%

This heat map reflects the percentage changes of major currencies relative to one another. The base currency is listed in the left-hand column and the quote currency along the top row. For instance, selecting the British Pound in the left column and moving horizontally to the US Dollar cell shows the percentage change for GBP (base)/USD (quote).