- Pound (GBP) lifted by BRC retail sales
- UK economic calendar quiet
- Euro (EUR) strengthens after GDP revised higher
- Attention turning to Thursday’s ECB meeting
The Pound Euro (GBP/EUR) exchange rate is ticking a few pips lower snapping a 5 day winning streak. The pair settled just 4 pips higher on Tuesday at €1.1673 after hitting a high 9 day high of €1.1695 earlier in the session. At 05:15 UTC, GBP/EUR trades -0.05% at €1.1665.
The Pound struggled to make real headway in the previous session amid a quiet week for UK economic releases and central bank speak.
Mid-tier data from the British Retail Consortium provided at least some direction. The data revealed that retail sales ticked higher in February. Retail sales on a like for like basis rose 9.5% compared to February 2020. On a total basis sale increased 1%, above the 3 month and the 12 month average.
Online sales remained high benefitting those retailers who had invested in their digital platform. Furthermore, with the light at the end of the lockdown tunnel, figures could continue improving.
A strong vaccine rollout programme continues to support Sterling. Nearly 22.6 million Brits have now received the first covid vaccine dose. The number of new cases was 5,766 whilst deaths recorded were 231.
Looking ahead the UK economic calendar remains quiet until Friday, which sees the release of UK GDP monthly and manufacturing and industrial production.
The Euro traded firmly across the board on Tuesday as demand for the US Dollar softened. The Euro was also supported by upbeat GDP data.
The third revision of fourth quarter GDP revealed that the Eurozone economy performed not quiet as bad as originally feared. GDP was revised lower to -4.9% contraction year on year in Q4, a slight improvement on the previous reading of 5%.
There is little in the way of high impacting data for the Eurozone tomorrow. Instead, attention will be turning to the European Central Bank meeting on Thursday. Whilst the central bank is not expected to move on rates attention will be on the bond buying programme in light of recent rising yields.