EUR/GBP Falls as German Retail Sales Miss Expectations

The EUR/GBP exchange rate softened to around 0.8570 in Tuesday's early European session, as Germany's Retail Sales fell more than expected in July.

Data released by Destatis showed that German Retail Sales dropped 3.4% MoM in July, compared to a 0% rise in June and market expectations of a 0.4% increase.

Bank of England Governor Andrew Bailey played down the inflation threat, saying that the UK is not yet experiencing significant second-round inflation effects.