{"id":4182,"date":"2017-12-21T00:00:00","date_gmt":"2017-12-21T05:00:00","guid":{"rendered":"https:\/\/currencylive.com\/100279-gbp-eur-uk-retail-sales-drop\/"},"modified":"2017-12-21T00:00:00","modified_gmt":"2017-12-21T05:00:00","slug":"100279-gbp-eur-uk-retail-sales-drop","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/100279-gbp-eur-uk-retail-sales-drop\/","title":{"rendered":"Pound At 3 Week Low vs. Euro Following Dip in UK Retail Sales"},"content":{"rendered":"<p>The pound traded lower versus the euro on Wednesday. A weakening in UK retail sales and the euro\u2019s focus on consumer confidence kept the pound euro exchange rate low. The pound hit a nadir of \u20ac1.1263 versus the common currency.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>What do these figures mean? <\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute. For example, it could be written: <em>1 GBP = 1.13990 EUR<\/em> <em>Here, \u00a31 is equivalent to approximately \u20ac1.14. This specifically measures the pound\u2019s worth against the euro. If the euro amount increases in this pairing, it\u2019s positive for the pound.<\/em> Or, if you were looking at it the other way around: <em>1 EUR = 0.87271 GBP<\/em> <em>In this example, \u20ac1 is equivalent to approximately \u00a30.87. This measures the euro\u2019s worth versus the British pound. If the sterling number gets larger, it\u2019s good news for the euro.<\/em> <\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n<p>A retail sales survey carried out by the Confederation of British Industry (CBI) indicated a slowdown in UK consumer spending. After a strong November, the survey showed a loss of momentum in December, a month which should traditionally see a pick up thanks to shoppers buying up presents before Christmas.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>Why does poor economic data drag on a country\u2019s currency? <\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Slowing economic indicators point to a slowing economy. Weak economies have weaker currencies because institutions look to reduce investments in countries where growth prospects are low and then transfer money to countries with higher growth prospects. These institutions sell out of their investment and the local currency, thus increasing supply of the currency and pushing down the money\u2019s worth. So, when a country or region has poor economic news, the value of the currency tends to fall. <\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n<p>Bank of England Governor Mark Carney\u2019s appearance before the Treasury Select Committee capped the losses in the pound. He laid out the central bank\u2019s plans to keep EU banks operating in the UK almost as normal following Brexit. This would keep stability in the financial systems in the UK and the EU, while protecting the City of London\u2019s position as a global financial centre. The measures put forward by Carney would support the UK economy and prevent job losses.<\/p>\n<p>Today sees investor attention shift back towards data. The Gfk consumer confidence index for December could keep sterling under pressure if it shows that consumers are nervous about the future. Given all the uncertainties that go hand in hand with Brexit, weak consumer confidence is almost certain. Public sector net borrowing figures could also cause volatility in sterling.<\/p>\n<h2><a href=\"#euro-traders-look-to-consumer-confidence-data-catalan-vote\" name=\"euro-traders-look-to-consumer-confidence-data-catalan-vote\"><\/a>Euro Traders Look To Consumer Confidence Data &amp; Catalan Vote<\/h2>\n<p>The euro enjoyed a strong previous session despite weaker than forecast German economic data. Inflation at factory gate level, as measured by producer price index slipped back in November to 2.5% on an annual basis or 0.1% on a monthly basis, missing analysts forecasts of 2.6% and 0.2%. These figures are in line with the cautious tone from the European Central Bank over inflation, which is predicts will not hit its target 2% level until after 2020. Normally a weaker inflation outlook would drag a currency lower.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>Why do raised interest rates boost a currency\u2019s value? <\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Interest rates are key to understanding exchange rate movements. Those who have large sums of money to invest want the highest return on their investments. Higher interest rate environments tend to offer higher yields. So, if the interest rate or at least the interest rate expectation of a country is relatively higher compared to another, then it attracts more foreign capital investment. Large corporations and investors need local currency to invest. More local currency used then boosts the demand of that currency, pushing the value higher. <\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n<p>Today, the euro could retain some of its strength, should eurozone consumer confidence figures give an encouraging picture. Any indication of optimism in the bloc is likely to boost demand for the common currency. Euro traders will also keep an eye on the vote in Catalonia to see whether the independence drive in waning.<\/p>\n<table class=\"table table-bordered\">\n<tbody>\n<tr>\n<td>\n<p><small><em><br \/>\nThis publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Inc., Currency Live or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. Consult our <a href=\"https:\/\/currencylive.com\/risk-warning\/\">risk warning<\/a> page for more details.<\/em><\/small><\/p>\n<p><small><em>This article was initially published on TransferWise.com from the same author. The content at Currency Live is the sole opinion of the authors and in no way reflects the views of TransferWise Inc.<\/em><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The pound traded lower versus the euro on Wednesday. A weakening in UK retail sales and the euro\u2019s focus on consumer confidence kept the pound euro exchange rate low. The pound hit a nadir of \u20ac1.1263 versus the common currency. What do these figures mean? When measuring the value of a pair of currencies, one [&hellip;]<\/p>\n","protected":false},"author":163946597,"featured_media":4183,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1380,1379],"tags":[1395,1394],"class_list":["post-4182","post","type-post","status-publish","format-standard","has-post-thumbnail","category-eur","category-gbp","tag-eur","tag-gbp"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Pound At 3 Week Low vs. Euro Following Dip in UK Retail Sales - Currency Live<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/currencylive.com\/news\/100279-gbp-eur-uk-retail-sales-drop\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Fiona Cincotta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100279-gbp-eur-uk-retail-sales-drop\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100279-gbp-eur-uk-retail-sales-drop\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"Pound At 3 Week Low vs. Euro Following Dip in UK Retail Sales\",\"datePublished\":\"2017-12-21T05:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100279-gbp-eur-uk-retail-sales-drop\\\/\"},\"wordCount\":845,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100279-gbp-eur-uk-retail-sales-drop\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100277-gbp-eur-uk-retail-sales-drop.jpg\",\"keywords\":[\"eur\",\"gbp\"],\"articleSection\":[\"EUR\",\"GBP\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2017\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100279-gbp-eur-uk-retail-sales-drop\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100279-gbp-eur-uk-retail-sales-drop\\\/\",\"name\":\"Pound At 3 Week Low vs. Euro Following Dip in UK Retail Sales - 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