At 10:00am the Euro to Pound exchange rate was trading at 0.8564.
The Euro has halted its rise and retreated against the majority of its most traded peers as weak German retail sales data and signs that the USA’s economy is slowing down dragged on the single currency.
A decline in confidence that the world’s biggest economy is maintaining its economic recovery was exacerbated by worse-than-expected Advance GDP figures. A reduction in US military spending, investment and exports all contributed the decrease of 0.1%.
Meanwhile, German retail sales tumbled by their largest amount in three years in December damaging hopes that retail consumption can compensate for the weaker exports and help Europe’s largest economy this year.
The notoriously volatile indicator slid by 4.7 per cent compared to a year ago, the weakest annual result since May 2009. On a monthly basis, the fall was a more modest 1.7 per cent, still the biggest drop since May 2011.
“We had weak German retail sales data which is weighing on the Euro,’ said ING’s head strategist. “But it’s only a dip and given the sharp move we have had, this was bound to happen. As long as the European Central Bank does not express concern about the currency’s strength, it will be tough for the trend to turn.”
These exchange rates were correct as of 10:00 am
The Pound to Euro exchange rate is currently trading at 1.1671
The Pound to US Dollar exchange rate is currently trading at 1.5833
The Pound to Australian Dollar exchange rate is currently trading at 1.5194
The Euro to US Dollar exchange rate is currently trading at 1.3559
The Euro to Pound exchange rate is currently trading at 0.8564