EUR/GBP is down 0.4% so far this week and has reached a new two-week low below 0.8560.
Although not as much as in July, German retail sales decreased in August for the second straight month.
While the current account deficit surprisingly shrank in Q2, the UK GDP has been revised up.
On Wednesday, the Euro (EUR) continued its losses against the British Pound (GBP) for the fourth day in a row as the UK's Q2 GDP was revised higher and German retail consumption data failed to inspire investors. The EUR/GBP pair has down 0.4% so far this week, hitting new two-week lows below 0.8560.
Retail sales in Germany decreased 0.4% in August following a 2.5% down in July, according to data released on Wednesday. The year-over-year (Y-o-Y) reading showed a 1.3% recovery following a 3.4% decline in the prior month, but it was still below the 2% rise that the market had predicted.
The UK's GDP growth for the second quarter was revised from 0.4% to 0.5%, while the Y-o-Y reading was changed from 1.2% to 1.4%. In addition, figures from the UK National Statistics Office showed that, contrary to market predictions of a growing deficit to GBP 25.6 billion, the Current Account deficit shrank to GBP 19.932 billion in Q2 from a downwardly revised GBP 21.12 billion in Q1.
The Euro continues to be impacted by high oil prices and France's debt.
Due to rising oil prices and mounting worries over France's national debt, the two have been on the defense for the past few weeks. Concerns about France's borrowing costs continue to be a major obstacle to any meaningful Euro appreciation, although Brent Oil has dropped below $96.00 from Tuesday's highs above $101.00, offering some respite to the economies of the Eurozone that import oil.
The amount of French public debt reached its greatest level since 1946 in June, at EUR 3,596 trillion, or 119% of GDP. Any viable savings strategy is being ruled out by the government's impasse, and the difference between the yields on French and German debt has increased to 115 basis points, the most since 2012, raising concerns about another financial crisis in the Euro Area.
Although not as much as in July, German retail sales decreased in August for the second straight month.
While the current account deficit surprisingly shrank in Q2, the UK GDP has been revised up.
On Wednesday, the Euro (EUR) continued its losses against the British Pound (GBP) for the fourth day in a row as the UK's Q2 GDP was revised higher and German retail consumption data failed to inspire investors. The EUR/GBP pair has down 0.4% so far this week, hitting new two-week lows below 0.8560.
Retail sales in Germany decreased 0.4% in August following a 2.5% down in July, according to data released on Wednesday. The year-over-year (Y-o-Y) reading showed a 1.3% recovery following a 3.4% decline in the prior month, but it was still below the 2% rise that the market had predicted.
The UK's GDP growth for the second quarter was revised from 0.4% to 0.5%, while the Y-o-Y reading was changed from 1.2% to 1.4%. In addition, figures from the UK National Statistics Office showed that, contrary to market predictions of a growing deficit to GBP 25.6 billion, the Current Account deficit shrank to GBP 19.932 billion in Q2 from a downwardly revised GBP 21.12 billion in Q1.
The Euro continues to be impacted by high oil prices and France's debt.
Due to rising oil prices and mounting worries over France's national debt, the two have been on the defense for the past few weeks. Concerns about France's borrowing costs continue to be a major obstacle to any meaningful Euro appreciation, although Brent Oil has dropped below $96.00 from Tuesday's highs above $101.00, offering some respite to the economies of the Eurozone that import oil.
The amount of French public debt reached its greatest level since 1946 in June, at EUR 3,596 trillion, or 119% of GDP. Any viable savings strategy is being ruled out by the government's impasse, and the difference between the yields on French and German debt has increased to 115 basis points, the most since 2012, raising concerns about another financial crisis in the Euro Area.
