Euro declines against British Pound following UK Retail Sales, German Producer Price data
EUR/GBP inches lower after three days of gains, trading around 0.8590 during the Asian hours on Friday. The currency cross is facing downward pressure as the British Pound (GBP) gains momentum following stronger-than-expected United Kingdom (UK) Retail Sales data.
The Euro (EUR) against the British Pound (GBP) experienced a decline on Friday, trading around 0.8590 during Asian hours. The downward pressure on the EUR/GBP currency cross was attributed to the British Pound (GBP) gaining momentum following stronger-than-expected UK Retail Sales data. The UK Office for National Statistics reported that Retail Sales expanded by 0.5% month-over-month (MoM) in August, surpassing market forecasts for a 0.2% drop.
On an annual basis, Retail Sales surged 2.4%, indicating a robust economic performance. Simultaneously, German producer prices increased 4.6% year-on-year in August, exceeding the consensus estimate of 4.1% and marking the fastest annual pace since April 2023. This surge in producer prices highlighted intensifying wholesale inflation pressures in Germany.
Economists from ING noted that eurozone industrial production had grown for four consecutive months despite geopolitical challenges, driven by European industry's comparative advantage over Asia and increased defense spending. The Retail Sales data, published monthly by the UK Office for National Statistics, gauges the volume of goods sold by retailers in Great Britain to end customers, serving as a key indicator of consumer spending.
Positive retail sales readings are seen as favorable for the GBP, while low readings may bear on the currency.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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