Euro Holds Against Pound as UK Retail Sales Disappoint

The euro has held onto its gains against the pound after UK retail sales data showed a disappointing decline in March. The Office for National Statistics reported a 0.9% month-on-month drop, exceeding economists' expectations of a 0.4% decrease.

This news added to a series of weak economic indicators, including softer inflation and a contracting services sector, which have fueled speculation that the Bank of England may pivot to a more dovish stance in the coming months.

The pound weakened across the board after the release, with the euro benefiting from the divergence in economic data between the eurozone and the UK. Technical analysts note that EUR/GBP has broken above its 50-day moving average, a bullish signal, though resistance is seen near 0.8600.