Pound At 3 Week Low vs. Euro Following Dip in UK Retail Sales
  • Pound (GBP) rebounds after days of losses
  • UK retail sales & PMI data due
  • Euro (EUR) boosted by weak USD & reopening optimism
  • Eurozone manufacturing & services PMIs

The Pound Euro (GBP/EUR) exchange rate is edging lower on Friday, paring mild gains from the previous session. The pair settled +0.08% higher on Thursday at €1.1602, towards the high of the day and after two days in the red. At 05:45 UTC, GBP/EUR trades -0.08% at €1.1594. The pair is set to end the week at roughly the same level that it started the week

The Pound found support on Thursday, lifted by signs of the economy sparking back into life as covid restrictions are eased. Figures from card processor Barclaycard Payments revealed that spending at pubs and bars shot up 171% compared to the previous week, whilst restaurant sales were 58% higher.

Overall, spending in hospitality surged 43% compared to the previous week and 9% up on the same period in 2019. Whilst it is still early days, the data bodes well for economic growth.

Today there is plenty of data for investors to focus on. Firstly, retail sales are expected to show a strong 4.5% growth month on month in April. This comes after a 5.4% increase month on month in March. Sales are expected to remain elevated as the UK economy reopened shops after the lockdown period.

UK PMI data for manufacturing and services for May are due. The preliminary reading is expected to show that both sectors continued to expand firmly this month as the UK economy continued to ease pandemic restrictions.

The Euro traded lower versus the Pound but rallied versus the US Dollar in the previous session. There was no notable data from the Eurozone. However, optimism amid the lower covid numbers and releasing of lockdown restrictions helped to support the common currency.

Today, PMI data will be surely in focus for both the manufacturing and services sectors. The numbers. Last month the data provided encouraging evidence of business growth accelerating as covid numbers declined. Analysts are expecting to see a continuation of this trend as the region emerges from its third wave.