Euro Loses Ground Against Pound on German Retail Sales Disappointment

The euro depreciated against the British pound on Friday following Germany's disappointing retail sales figures for July. The data, released by Destatis, showed a 1.2% month-on-month decline in real terms, exceeding analysts' forecast of a 0.5% drop.

This marks the second consecutive monthly decrease in German retail sales, which is a key indicator of private consumption. The annual figure for July was down 2.2% compared to the same period last year, highlighting persistent weakness in consumer sentiment.

The EUR/GBP pair slipped to around 0.8450 after the release, down 0.2% on the day. This is seen as a sign that the European Central Bank (ECB) may need to cut interest rates further to support growth, weighing on the euro's value.