EUR/GBP Exchange Rate Holds Gains on UK Retail Sales Disappointment

The EUR/GBP exchange rate held its gains against the British pound on Friday after UK retail sales data showed a steeper decline than expected in March.

According to the Office for National Statistics, UK retail sales volumes dropped 0.9% month-on-month in March, worse than the 0.4% decline forecast by economists.

This follows a revised 0.4% increase in February, indicating that consumer spending lost momentum in the first quarter.

The disappointing data adds to a series of weak economic indicators, including softer inflation and a contracting services sector, which have fueled speculation that the Bank of England could pivot to a more dovish stance in the coming months.