EUR/GBP stretches lower to near 0.8610 on downbeat German Retail Sales data, HICP eyed – Crypto News – Crypto News
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EUR/GBP struggles around 0.8660, upside remain favored on hawkish ECB bets EUR/GBP struggles around 0.8660, upside remain favored on hawkish ECB bets

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EUR/GBP stretches lower to near 0.8610 on downbeat German Retail Sales data, HICP eyed – Crypto News

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  • EUR/GBP loses ground on weaker-than-expected November Sales data from Germany.
  • German Retail Sales YoY and MoM declined by 2.4% and 2.5%, respectively.
  • Improved UK credit and housing data might have supported the British Pound.

EUR/GBP has almost retraced its recent profits, losing ground near 0.8610 during the European session Friday. The Euro (EUR) lost ground against the British Pound (GBP) as German Retail Sales data for November revealed a drop in November sales of the German retail sector.

German Retail Sales (YoY) declined by 2.4% against the expected fall of 0.5% and 0.1% decline previously. The monthly sales dropped by 2.5% against the expected decline of 0.1%, swinging from the previous growth of 1.1%. Investors are expected to keep a close eye on the upcoming release of the preliminary Harmonized Index of Consumer Prices (HICP) data from the European Monetary Union. The anticipation is that the inflation data might show an increase, attributed to base effects. This could provide European Central Bank (ECB) policymakers with room to favor maintaining higher interest rates for an extended period.

The Pound Sterling (GBP) gained ground possibly on the recent credit and housing data released from the United Kingdom (UK). On Thursday, UK Consumer Credit showed that individuals’ borrowing rose to £2.005B in November from the previous £1.411B (Revised from £1.289B). On Friday, Halifax House Prices (MoM) for December rose by 1.1% from the previous growth of 0.6%.

The gloomy economic outlook in the United Kingdom could weigh on the British Pound (GBP). The Institute of Directors Economic Confidence Index survey adds weight to this concern, highlighting a continued decline in optimism among British directors about the country’s economic prospects in the next 12 months. Corporate executives in the UK requested the Bank of England (BoE) to quickly lower interest rates, seeking support for the struggling economy.

 

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