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GBP declines following poor retail sales figures

GBP - British Pound

The pound declined as UK retail sales printed below forecasts, declining by 0.9% and for a fourth straight month the supply chain disruptions are weighing heavy on the economy. The contraction occurred amidst a resurgence of coronavirus cases and supply disruptions.

With the week ahead for the pound, focus will be on the Bank of England monetary policy announcement due on Thursday. Although the BoE is not expected to raise interest rates, it could adopt a more optimistic tone to consider an increase sooner rather than later, which could lead to a stronger pound.

Key Movers

The week ahead is expected to be fairly quiet for the Eurozone on the economic calendar front. Services PMI and manufacturing PMI data will be released at the end of the week in addition to the German elections next weekend, which will likely to be the biggest focus for the euro.

Expected Ranges

GBP/USD: 1.3625 - 1.3685 ▼

GBP/EUR: 1.1665 - 1.1695 ▼

EUR/USD: 1.1675 - 1.1715 ▼