Euro Slides to Two-Week Lows as Germany's Retail Sales Disappoint

The Euro has extended its losses against the British Pound for the fourth consecutive day, hitting fresh two-week lows below 0.8560 due to disappointing German retail sales data and a revised higher UK Q2 GDP.

Data released on Wednesday showed that German Retail Sales contracted 0.4% in August, falling short of market expectations of a 2% gain.

The UK's second-quarter GDP was revised to 0.5% growth from previous estimates of 0.4%, with the year-on-year reading increasing to 1.4% from 1.2%. The Current Account deficit in the UK narrowed to £19.932 billion in Q2, against market expectations of a widening shortfall.

Higher oil prices and concerns about France's public debt are continuing to weigh on the Eurozone economy.