- Sterling on track for the third day of losses
- EUR under pressure again eyeing parity against USD
- UK retail sales figures eyed
- EUR eyes PPI inflation, which is expected to cool off
The Pound Euro (GBP/EUR) exchange rate drops for the third consecutive day but looks to close indecisive for the week. The pair declined by -0.11% in the previous session settling on Thursday at €1.1829, after trading in a range between €1.1869 – €1.1811.
At 05:59 UTC, GBP/EUR trades -0.07% at €1.1821.
In the UK, retail sales growth eased down to -5.8% annualized rate in June, failing to keep up with rising inflation trends. Based on the market consensus, UK consumer spending is expected to grow by -3.3% in July.
Consumer price inflation rose to 10.1% in July the data showed on Wednesday. This is the highest inflation reading in 40 years. This led to a selloff in the British Pound as the hot reading of the inflation rate boosted recession fears.
Another significant economic report on the calendar today is the Producer Price Index (PPI) data from Germany. Annual producer inflation in Germany is expected to ease down to 32%in July from 32.7% previous reading.
Producer prices in Germany broke to a record high of 33.5% in April mainly driven by higher energy prices. The single currency in the Eurozone continues to remain under pressure against of basket of other currencies.