{"id":4725,"date":"2018-07-19T00:00:00","date_gmt":"2018-07-19T04:00:00","guid":{"rendered":"https:\/\/currencylive.com\/100565-gbp-eur-uk-retail-sales-data\/"},"modified":"2018-07-19T00:00:00","modified_gmt":"2018-07-19T04:00:00","slug":"100565-gbp-eur-uk-retail-sales-data","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/100565-gbp-eur-uk-retail-sales-data\/","title":{"rendered":"GBP\/EUR: Can UK Retail Sale Help Lift The Pound vs. Euro?"},"content":{"rendered":"<p>Weak inflation data from both the UK and the eurozone weighed on demand for the pound and the euro on Wednesday. The pound fell harder, pulling the pound euro exchange rate to a low of \u20ac1.1197.<\/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>\n<p> 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. <\/p>\n<p> For example, it could be written: <em>1 GBP = 1.13990 EUR<\/em> <\/p>\n<p> <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> <\/p>\n<p> Or, if you were looking at it the other way around: <em>1 EUR = 0.87271 GBP<\/em> <\/p>\n<p> <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> <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The pound tumbled in the previous session as investors switched their attention back to the economic calendar. Data showed that inflation in the UK remained at a one year low in June. Instead of ticking higher to 2.6%, as analysts forecast, inflation remained constant at 2.4% year on year. Inflation was boosted by higher petrol prices and a weaker pound, however cheaper house prices and summer clothing sales put downward pressure on inflation.<\/p>\n<p>With inflation at a 12-month low and wages growth slipping, the Bank of England (BoE) could struggle to find reasons to hike interest rates when they meet in two weeks. The softer inflation figure cast a doubt over whether the central bank will hike rates in Aug. As a result, the pound fell 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>\n<p>Today investors will look towards retail sales data to see whether consumers continue to spend. Analysts are expecting retails sales to have declined from May\u2019s exceptional 4% to 3.7% in June. This would still be a respectable figure and could support a rate rise. A weaker figure could cast further doubts on the BoE\u2019s ability to hike rates, which would send the pound lower.<\/p>\n<h2><a href=\"#eurozone-inflation-increases-core-inflation-falls\" id=\"eurozone-inflation-increases-core-inflation-falls\"><\/a>Eurozone Inflation Increases; Core Inflation Falls<\/h2>\n<p>Eurozone inflation ticked up in June to 2% year on year up from 1.9% in May. This means that inflation in the eurozone has now hit the European Central Bank\u2019s target of 2%. Surging oil prices have played a key role, with energy prices around 8% higher. However, higher energy prices are masking a weaker underlying inflation. Core inflation which excludes more volatile items such a food and fuel slipped in June to just 0.9% down from 1% in May.<\/p>\n<p>Whilst the European Central Bank (ECB) is not looking to raise interest rates until after the summer of 2019, investors still keep a close eye on the levels. Should the price of oil ease, then the price of fuel will ease and inflation could fall away quickly.<\/p>\n<hr \/>\n<p><small><\/p>\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>Weak inflation data from both the UK and the eurozone weighed on demand for the pound and the euro on Wednesday. The pound fell harder, pulling the pound euro exchange rate to a low of \u20ac1.1197. What do these figures mean? When measuring the value of a pair of currencies, one set equals 1 unit [&hellip;]<\/p>\n","protected":false},"author":163946597,"featured_media":4726,"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-4725","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>GBP\/EUR: Can UK Retail Sale Help Lift The Pound vs. Euro? - 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\/100565-gbp-eur-uk-retail-sales-data\/\" \/>\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\\\/100565-gbp-eur-uk-retail-sales-data\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100565-gbp-eur-uk-retail-sales-data\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"GBP\\\/EUR: Can UK Retail Sale Help Lift The Pound vs. Euro?\",\"datePublished\":\"2018-07-19T04:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100565-gbp-eur-uk-retail-sales-data\\\/\"},\"wordCount\":732,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100565-gbp-eur-uk-retail-sales-data\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100565-gbp-eur-uk-retail-sales-data.jpg\",\"keywords\":[\"eur\",\"gbp\"],\"articleSection\":[\"EUR\",\"GBP\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2018\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100565-gbp-eur-uk-retail-sales-data\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100565-gbp-eur-uk-retail-sales-data\\\/\",\"name\":\"GBP\\\/EUR: Can UK Retail Sale Help Lift The Pound vs. Euro? 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