GBP/EUR: Pound Heads Higher As EU To Mull Over Brexit Extension

The Pound Euro (GBP/EUR) exchange rate is holding steady at €1.1640, paring earlier gains.

The pound initially pushed higher despite retail sales falling by -0.5% MoM in May, after April’s figure was also downwardly revised to 0.4% from 1.4%. The data suggests that rising inflation is forcing consumers to change habits.

Attention will turn to BoE speakers for further clues on monetary policy.

The euro fell after weak PMI data yesterday indicated that the region is heading for a recession.

German IFO business sentiment data fell by more than expected which is not that surprising given the concerns over gas security.