The Pound to Euro (GBP/EUR) exchange rate recently dipped to ten-week lows at 1.1630. Analysts at HSBC believe this decline results from government U-turns on welfare reform. A faster pace of Bank of England rate cuts could significantly undermine the Pound’s value, especially as expectations of additional tax increases grow. The situation remains dynamic, and traders should monitor these developments closely as they unfold. This forecast positions GBP/EUR at 1.1360 by the end of 2025. Have you adjusted your strategies accordingly?