Euro dips further against British Pound as German Retail Sales disappoint

The Euro (EUR) continues to decline against the British Pound (GBP) for the fourth consecutive day on Wednesday, as German retail consumption figures did not provide a boost for investors. Meanwhile, the UK's revised second-quarter Gross Domestic Product (GDP) showed growth, adding to the pressure on the EUR/GBP pair, which has hit fresh two-week lows below 0.8560, slipping 0.4% this week.

German retail sales contracted by 0.4% in August, after falling 2.5% in July, while the year-on-year (Y-o-Y) reading showed a 1.3% increase after dropping 3.4% in the previous month. However, these figures fell short of the 2% gain expected by the market. In the UK, the second quarter's GDP has been revised to 0.5% growth from the previous estimate of 0.4%, and the year-on-year reading to 1.4% from the 1.2% previously released.

The pair has faced additional downward pressure due to higher oil prices and concerns about France's public debt. France's public debt reached EUR 3,596 trillion in June, accounting for 119% of its GDP, its highest level since 1946. The government's political deadlock has ruled out any significant savings plan, and the widening gap between French and German debt yields has pushed to 115 basis points, the largest since 2012, sparking fears of another Eurozone credit crisis.