The EUR/GBP pair edged lower to around 0.8735 in early European trading on Friday. The Pound gained against the Euro following better-than-expected UK economic figures. Later in the day, markets will focus on the preliminary Purchasing Managers’ Index (PMI) reports from the Eurozone, Germany, and the United Kingdom.
Figures released by the Office for National Statistics (ONS) showed UK Retail Sales rose 1.8% month-on-month in January, up from 0.4% previously and well above the 0.2% increase economists had predicted. On a yearly basis, sales increased 4.5%, compared with 1.9% previously (revised from 2.5%), also beating the 2.8% forecast. The stronger data supported the Pound, drawing immediate buying interest.
Meanwhile, European Central Bank President Christine Lagarde said she intends to remain in her role until October 2027, according to the Wall Street Journal. She did not directly address speculation about a possible early exit but mentioned the World Economic Forum as one of several options she may consider after leaving the ECB.
Investors now await the flash PMI readings from the Eurozone and Germany. A stronger set of figures could help the Euro recover some ground against the Pound in the short term.
