EUR/GBP steadies above 0.8750 ahead of German Retail Sales data
|- EUR/GBP may rise as the Euro could gain on ECB caution over elevated inflation perceptions and wage pressures.
- ECB President Christine Lagarde said Eurozone inflation should stabilize at the 2% target over the medium term.
- The Pound Sterling weakens on rising BoE rate cut expectations after soft jobs data and easing inflation.
EUR/GBP moves sideways after two days of gains, trading around 0.8770 during the Asian hours on Monday. However, the currency cross may advance as the Euro (EUR) could draw support from the European Central Bank’s (ECB) cautious stance, amid elevated consumer inflation perceptions and potential wage-driven price pressures. German Retail Sales data for January will be eyed later in the day.
European Central Bank (ECB) President Christine Lagarde said last week that Eurozone inflation is projected to stabilize at the 2% target over the medium term, adding that disinflation efforts have been effective. Lagarde noted that economic activity should be supported by rising labor income in a resilient job market, along with increased investment in defense, infrastructure, and digital technologies.
The EUR/GBP cross may further gain ground as the Pound Sterling (GBP) struggles with the increasing likelihood of interest rate cuts by the Bank of England (BoE), following weaker employment data and continued easing of inflationary pressures.
The British Pound faces added pressure after Labor’s by-election defeat in Gorton and Denton cast doubt on Prime Minister Keir Starmer’s leadership. The loss has intensified criticism from Labor MPs ahead of the May elections in Scotland, Wales, and several English councils, widely viewed as a key test of his premiership.
Economic Indicator
Retail Sales (YoY)
The Retail Sales released by the Statistisches Bundesamt Deutschland is a measure of changes in sales of the German retail sector. It shows the performance of the retail sector in the short term. Percent changes reflect the rate of changes of such sales.The changes are widely followed as an indicator of consumer spending. The positive economic growth anticipates "Bullish" for the EUR, while a low reading is seen as negative, or bearish, for the EUR.
Read more.Next release: Mon Mar 02, 2026 07:00
Frequency: Monthly
Consensus: -
Previous: 1.5%
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.