Euro Retreats from Weekly Highs Against Pound as UK Data Surpasses Expectations
The Euro retreated from its weekly highs against the British Pound following the release of UK economic data that beat expectations. The Gross Domestic Product (GDP) rose 0.4% in July, surpassing forecasts of a flat reading and building on June's 0.3% increase.
Industrial Production also saw a boost, with a 0.2% rise after a 0.2% decline in June. Manufacturing Production grew by 0.9%, its strongest growth in four months, exceeding predictions of a 0.2% advance.
The UK Index of Services, which measures the services industry, rose 0.6% over three months to July, outpacing expectations of 0.5%. The Goods Trade Balance deficit narrowed to GBP 20.96 billion from June's GBP 23.00 billion, also beating forecasts of a GBP 22.3 billion shortfall.
Meanwhile, the European Central Bank (ECB) raised its benchmark Rate on the Deposit Facility by 25 basis points to 2.5% for the second consecutive time, amid rising consumer price pressures. ECB President Christine Lagarde warned that inflation will only return to 2% by the end of next year and hinted at further rate hikes.