UK retail sales surge boosts GBP
Daily Currency Update
The euro is under pressure today following disappointing Eurozone Purchasing Managers’ Index (PMI) figures. Flash PMI readings for April showed contraction in both manufacturing and services sectors across France, Germany, and the broader Eurozone, with composite indices falling below expectations. This economic slowdown has dampened investor sentiment towards the euro, making the USD relatively stronger in the EUR/USD pair.Against the US dollar, the British pound is showing resilience. The combination of robust retail sales and higher inflation has mitigated some of the USD's strength, supporting the GBP/USD pair. With the Federal Reserve's cautious approach to interest rate cuts and the Bank of England's current stance, the GBP/USD exchange rate remains relatively stable.
Key Movers
The British pound is gaining momentum today, bolstered by stronger-than-expected UK retail sales data. Retail sales rose by 1.2% in April, surpassing forecasts of 0.2% and marking the fourth consecutive monthly increase—the strongest quarterly growth in nearly four years. This uptick in consumer spending, particularly in food and household goods, suggests resilience in the UK economy.Expected Ranges
- GBP/USD: 1.3450 - 1.3480 ▲
- GBP/EUR: 1.1870 - 1.1910 ▲
- GBP/AUD: 2.0870 - 2.09 ▲
- EUR/USD: 1.13 - 1.1360 ▲