pound-sterling-gbp-coin - GBP

The Pound Euro (GBP/EUR) exchange rate is heading lower and is set to end the week at a weaker level than it started the week.

The Pound has come under pressure after UK retail sales unexpectedly slumped lower in July. Retail sales ex fuel contracted -2.4% MoM in July, analysts had been expecting a 0.3% rise.

The data comes following weaker than expected CPI inflation earlier in the week.

The Euro is gaining ground after German wholesale inflation jumped 1.9% MoM well ahead of the 0.8% forecast. Annually PPI inflation rose 10.4% above the 9.2% forecast. A level which could well catch the ECB’s eye.