UK Retail Sales show a decline and the impact on GBPEUR rates
The Pound Euro exchange rate has been slowly falling lower each day over the course of the week as the UK economy fails to provide much good news.
UK Retail Sales showed an increase of 0.5% in January after falling the month before according to the Office for National Statistics.
However, sales compared to twelve months ago showed a fall of 5.1%.
With consumers being heavily impacted in the UK by the cost of living crisis with inflation currently sitting above 10% this news should come as little surprise.
UK inflation is close to its highest level in forty years and at the moment it shows little signs of slowing down.
Energy prices remain high and with mortgages having increased in the UK owing to the Bank of England’s decision to hike interest rates for the 10th time in a row since December 2021, people in the UK are really feeling the pinch.
UK Retail Sales are still lower than prior to the pandemic and with the cost of living so high this is one of the main reasons why consumers have reduced their spending recently.
This news has caused the Pound to weaken against the Euro which comes as good news for anyone who is in the process of selling a property in Europe and needing to buy Pounds with Euros.
What will next week’s data bring and the impact on fx markets
As we look ahead to next week, Thursday could be a big day for GBPEUR exchange rates with the release of Eurozone inflation figures due out in the morning.
This will be followed in the afternoon by US GDP figures for the fourth quarter.
As the US is the world’s leading economy any major release such as GDP can have a big impact on the foreign exchange markets so pay close attention to what may happen towards the end of next week.
If you would like a free quote when buying or selling currency compared to using your own bank then contact me directly and I look forward to hearing from you. Tom Holian [email protected]
