EUR/GBP Rises Above The 0.8500 After A Weak UK Retail Sales Data
After the release of the downbeat retail sales data from the UK, the EUR/GBP pair refreshed new highs and was seen near 0.8545. The recent rise in the EUR/GBP also highlights that markets are now less fearful about a slowdown in the German and the overall Eurozone economy.
In the next week, the market's mood will be cautious as the focus will be on the key events. That's yet another factor that allowed the EUR to overpower the GBP and refresh from its weekly lows.
UK Retail Sales In July Was -1.4%
For the month of July, retail sales data of the UK was -1.4% year over year against the expectations of -2.21%. And if we look at the core retail sales data, it declined by -3.4% YoY against a forecast of -2.2%.
On the other side, the trade surplus data based on seasonal adjustment and non-seasonal adjustment also recorded an uptick.
The recent data shows that the trade surplus (s.a.) jumped to around 12.5B. Similarly, the trade surplus (n.s.a) was 23B. Both of these values were higher than the previous and even the forecasted numbers.
Earlier, we also had the GDP numbers from the GDP for the 2nd quarter, which showed that it was in line with the forecasts.
Looking ahead, the EUR/GBP pair make a step back and even experience some selling as the investors brace for the Jackson Hole Symposium and other major events.
Technically, the advance of EUR/GBP beyond the 0.8545 level will be essential if the EUR/GBP bulls want to stay relevant. On the contrary, a break of the multi-month lows will put the GBP bulls back in charge once again.
Overall, the technical and fundamental setup of the EUR/GBP gives hints towards some major price action for the week ahead. Given the price action of the last week, we can see a swing in either direction.