Euro Stays Weak Near 0.8400 After Poor German Sales Data
The Euro is trading near 0.8400 against the British Pound after Germany reported weak retail sales. In April, people in Germany spent less than expected — sales dropped by 1.2%, while experts had expected a 0.5% increase. This shows that the economy in Germany, the largest in the Eurozone, is facing some problems.
On the other hand, the British Pound is doing fine and staying stable. Now, traders are waiting for new inflation data from the Eurozone. This data is important because it might affect what the European Central Bank (ECB) decides to do next with interest rates.
If inflation stays high, the ECB might keep interest rates the same or increase them. But if inflation is low, the ECB could lower rates to help the economy.
Impact: EUR/GBP may stay near 0.8400 for now. If inflation comes in high, the Euro might go up. But if it is low, the Euro could weaken more, and the ECB might think about cutting rates.