- EUR/GBP holds losses after the positive UK Retail Sales data release on Friday.
- UK Retail Sales improved by 0.5% and 1.4% for MoM and YoY, respectively, in July.
- Eurozone GDP growth has increased bets for two potential rate cuts by the ECB by October.
EUR/GBP extends its losses for the second consecutive day, trading around 0.8530 during the Asian session on Friday. The EUR/GBP cross maintains its losses following the Retail Sales data from the United Kingdom (UK) released on Friday.
UK Retail Sales saw a 0.5% month-over-month increase in July, as anticipated, recovering from a previous decline of 0.9%. On an annual basis, sales grew by 1.4%, reversing the earlier 0.3% decline and meeting market expectations.
Additionally, UK GDP figures reported on Thursday that the UK economy expanded by 0.6% quarter-on-quarter in the second quarter, in line with expectations. Year-on-year, GDP increased by 0.9% in Q2, matching expectations and up from the 0.3% recorded in Q1.
Finance Minister Rachel Reeves highlighted that the latest data underscores the challenges facing the new government and reiterated her stance that difficult decisions will be necessary to improve economic fundamentals, according to Reuters.
In the Eurozone, on Thursday, recent data indicated a sharp drop in investor confidence and an unexpected decline in industrial activity. Despite this, preliminary Eurozone Gross Domestic Product (GDP) grew by 0.3% quarter-on-quarter in Q2, consistent with the previous period and in line with market expectations. Year-on-year, the economy expanded by 0.6%, as anticipated. This steady growth has increased speculation about two potential rate cuts by the European Central Bank (ECB) by October.
Economic Indicator
Retail Sales (MoM)
The Retail Sales data, released by the Office for National Statistics on a monthly basis, measures the volume of sales of goods by retailers in Great Britain directly to end customers. Changes in Retail Sales are widely followed as an indicator of consumer spending. Percent changes reflect the rate of changes in such sales, with the MoM reading comparing sales volumes in the reference month with the previous month. Generally, a high reading is seen as bullish for the Pound Sterling (GBP), while a low reading is seen as bearish.
Read more.Last release: Fri Aug 16, 2024 06:00
Frequency: Monthly
Actual: 0.5%
Consensus: 0.5%
Previous: -1.2%
Source: Office for National Statistics
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays near 1.0400 in thin holiday trading
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD struggles to find direction, holds steady near 1.2550
GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.