Sterling dropped sharply during Thursday’s trading following poor UK Retail Sales figures With heavy losses against the EUR and most of the other major currencies, are we finally seeing the end of the Pound’s recent run?
Poor UK Retail Sales were certainly a shock to the system, following a run of positive UK data stretching back a number of weeks. The official figure of -0.2% growth was well below the expected 0.3% and immediately Sterling was hit, losing almost 2 cents from the high of the morning by the close of European markets. The question now will be whether this trend continues or are we witnessing another false dawn for the EUR? Experts feel the EUR was likely to find some support sooner rather than later and it may be poor UK data was the catalyst. With a deal now in place between Greece and its creditors we may find that GBP struggles to break back through the highs of last week. While we should not anticipate a huge slide for the Pound but EUR buyers may now look to secure their currency near the high and not risk any further losses.
GBP/USD rates have also dropped with the pair now floating close to 1.55 and it feels as though we are approaching something of a crossroads for the pair. With positive noises being made from both the Bank of England (BoE) and US FED regarding a potential hike in interest rates.
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