EUR/GBP oscillates above 0.8520 ahead of UK Retail Sales
|- EUR/GBP is juggling in a minute range of 0.8520-0.8527 as investors await UK Retail Sales.
- The ECB paddled up its interest rates surprisingly by 50 bps.
- A slippage in UK Retail Sales will likely weaken the pound bulls.
The EUR/GBP pair is displaying back and forth moves in a narrow range of 0.8520-0.8527 in the early Tokyo session. The cross has turned sideways as investors are awaiting the release of the UK Retail Sales. In the New York session, the asset surrendered its entire gains recorded on an interest rate hike by the European Central Bank (ECB).
ECB President Christine Lagarde unexpectedly announced a rate hike by half a percent vs. expectations of 25 bps. Credit goes to the elevated prices, forcing the ECB chief to feature a jumbo rate hike. Earlier, ECB Lagarde, in her testimony, guided that the ECB is interested in elevating interest rates by 25 bps in July and later on by 50 bps in September.
Also, the ECB announced a new quantitative tool to support the southern European economies. The new fragmented tool ‘Transmission Protection Instrument’ will provide liquidity to member countries against public and private securities, with a maturity period of 1-10 years if required.
Per the market consensus, the UK Retail Sales may slip to -5.3% vs. -4.7% recorded earlier. This indicates the vulnerability in the overall demand in the UK. The Retail Sales data is already contaminated with higher price pressures, and more damage to the Retail Sales indicates that the overall demand is extremely lower.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.