EUR/GBP stays quiet near 0.8700 after strong UK sales — traders wait for new data
The EUR/GBP pair is calm around 0.8700, even after the UK showed better retail sales in September. Sales in stores went up by 0.5% from last month, while experts thought they would fall by 0.2%. Compared to last year, sales were 1.5% higher, also better than the expected 0.6%. Without fuel, core sales jumped 2.3%, showing people are spending more.
Even with this good news, the British Pound (GBP) didn’t get stronger. Traders still think the Bank of England (BoE) might cut interest rates later this year, which makes the pound less attractive.
The Euro (EUR), however, got a small boost after Eurozone consumer confidence improved to -14.2 in October — the best level in eight months. This means people in the euro area are feeling a bit more hopeful about the economy.
Now, traders are waiting for new PMI data from Germany, the Eurozone, and the UK. These reports will show how businesses are doing and may decide where the EUR/GBP moves next.
Impact:
The EUR/GBP might stay steady for now. Strong UK PMI data could push the pound higher, while better Eurozone numbers might help the euro rise.
