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EUR/GBP pair at 1 month high after crucial UK data

Pound Euro exchange rate Euro currency registered an expansion against the British pound on Wednesday trade session to one month high after official data from UK showed that Retail Sales sunk during April.

EUR/GBP pair rose to 0.8578 during European session, highest value since April 22nd. EUR/GBP was expected to receive support at 0.8513, lowest value for current session, while resistance levels were at 0.8600, highest value since April 16th.

It was reported that UK Retail Sales sunk by 1.3% during April on monthly basis, while in annual terms the indicator recorded a rise by 0.5% during April, mismatching forecasts for a 2.0% increase. The Office for National Statistics announced that barbecue food and garden furniture sales in UK showed weak data, most likely due to bad April weather.

Additionally, it became clear that three officials from Bank of England voted for further increase of stimulus. BOE Governor, Mervyn King expressed hopes that British economy would embrace higher levels of easing. He, alongside David Miles and Paul Fischer voted in favor of bond purchasing increase by 25 billion pounds to a total of 400 billion pounds.

Another report showed that Public Sector Net Borrowing (PSNB) in UK registered a positive balance, but however, lower during April, compared to previous period. The indicator recorded a 8.0 billion pound surplus during April, a retreat from higher figure during March, 12.6 billion pounds.

GBP/USD pair also sunk to 1.5073, seven-week low value, after the Retail Sales information from United Kingdom was released.

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