Euro holds gains against British Pound after weaker UK Retail Sales data
The EUR/GBP cross posts modest gains to around 0.8570 during the early European session on Friday. The British Pound (GBP) edges slightly lower against the Euro (EUR) following disappointing UK economic data.
The Euro (EUR) maintained gains against the British Pound (GBP) during the early European session on Friday, trading around 0.8570. This move came after disappointing UK retail sales data, which showed a decline in July compared to previous months. Traders are currently focusing on the preliminary Purchasing Managers Index (PMI) readings from Germany, the Eurozone, and the UK for further market movement.
UK retail sales fell for the first time since April, with a 0.5% month-over-month decline in July, according to the Office for National Statistics (ONS). The annual increase in July was revised downward to 1.6% from the previously reported 2.2%. Meanwhile, the Bank of England (BoE) is expected to keep interest rates unchanged at 3.75% for the rest of the year, while the European Central Bank (ECB) is anticipated to continue its hiking cycle.
Technical analysis indicates a mildly bearish bias for EUR/GBP, with the currency currently trading below its 100-day simple moving average.
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Also reported by 1 other outlet
- British retail sales drop for the first time in three months straitstimes.com
