The EUR/GBP currency pair settled below Friday’s high of 0.8679, its strongest level since March 20th, as market players remained largely indifferent to the latest UK consumption numbers, given that the data related to February and preceded the onset of the Iran war.
The latest figures from the Office for National Statistics showed that overall UK retail consumption decreased in February for the first time in three months.
Headline retail sales dropped 0.4% month-over-month following a 2% increase in January, while performing better than the expected 0.8% contraction.
Stripping out automotive fuel, retail sales fell 0.4% on the month, after a 2.2% rise in January.
The numbers led to a muted market reaction, as they do not capture the subsequent deterioration in consumer sentiment and the price surge associated with higher Oil prices after the beginning of the Iran conflict.
Meanwhile, higher Oil prices continued to weigh on the Euro Area outlook. In Spain, annual consumer price inflation has accelerated to 3.3% in March, or the highest level in 14 months.
The pickup in inflation has added to expectations that the European Central Bank could face increased pressure to raise interest rates in April, further shaping the policy backdrop for the Euro.
The minor Forex pair gained 0.54% for the week.
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