The Euro weakened to its lowest level in three-weeks against the Pound on Thursday due to the publication of better than expected UK retail sales data.
The single currency remained weaker against a number of peers after a number of European Central Bank Officials earlier in the week indicated that they were considering fresh policy options to tackle the threat of deflation and support the region’s flagging economic recovery.
“People are becoming a bit more optimistic on the fact that the ECB may be willing to ease policy in the months ahead, a lot of that driven by commentary from a host of policy makers over the last two days,” said a macro strategist at Credit Agricole.
The Pound pushed higher after retail sales data came in well above economist forecasts.
According to the Office for National Statistics retail sales in the UK climbed by 1.7% on a month by month basis, recovering from the sharp 2% decline recorded in the previous month. Yearly growth advanced by a strong figure of 3.7%.
On a three-month basis sales were higher by 1.6% than in the previous three, meaning that sales were at their highest level since August of last year. The figures beat economist predictions for a monthly rise of 0.5% and a yearly advance of 2.5%.
The Euro could recover some ground on Friday due to the publication of a number of data releases. Attention will be focused on French GDP growth rate figures, Spanish inflation and a number of reports on confidence and sentiment in the Eurozone.
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,US Dollar,1.3744 ,
Euro,,Australian Dollar,1.4884 ,
Euro,,Canadian Dollar,1.5255 ,