Euro Retreats Against Pound as Eurozone Retail Sales Disappoint

The Euro retreated against the Pound Sterling on Friday, snapping a four-day winning streak. The EUR/GBP cross had reached its highest level since July 1, but weak Eurozone Retail Sales data weighed modestly on the Euro.

Eurozone Retail Sales fell 0.6% MoM in July, missing expectations for a 0.3% increase and reversing the previous month's 0.2% gain. On an annual basis, sales rose 0.6%, below the 1.1% forecast and slowing from 1.4% previously.

Hawkish comments from BoE Chief Economist Huw Pill on Thursday provided some support to the British Pound (GBP). Pill reiterated his preference for raising the Bank Rate to 4%, arguing that a 'prompt increase in Bank Rate may head off some potential insidious catch-up dynamics.'