The single currency staged a small recovery against the pound early yesterday before fading, while slipping sharply against the US dollar. Since Tuesday evening EUR/USD has weakened by 2%.
It’s all been a bit up and down against the pound, with no clear direction becoming evident. Overall EUR/GBP has remained comparatively stable and returned to where it ended last week.
Yesterday’s data was almost universally dire. For example, eurozone construction PMI was 45.3, compared to the UK’s 52.3. Retail sales fell by 2% year on year, accelerating in a downward direction from a loss of 1.2% last month.
There were some bright spots, however. Spanish consumer confidence was stronger and German new car registrations shot up by 14%.
We’ve just had German data for industrial production, and retail sales, both of which fell, but slightly less than feared.
EUR/GBP past year
