Forex Pros – The euro extended gains against the pound on Thursday, climbing to a fresh three-week high, following a report showing that U.K. retail sales growth slowed more than expected in February to its weakest since last June.
EUR/GBP hit 0.8531 during European late morning trade, the pair’s highest since February 2; the pair subsequently consolidated at 0.8521, gaining 0.49%.
The pair was likely to find support at 0.8419, Wednesday’s low and resistance at 0.8576, the high of February 2.
The Confederation of British Industry said earlier that its monthly distributive trades survey’s sales balance fell to 6, from 37 in January, well below forecasts for a reading of 30.
The report said retailers expected sales growth to continue to slow next month, with the expected sales balance falling to zero.
“The positive effect of seasonal discounting on the High Street that previously boosted sales has now waned. Retail sales are likely to be more challenging over the coming months,” said Lai Wah Co, head of economic analysis at the CBI.
Meanwhile, quarterly figures from the CBI showed retailers put up prices at their fastest rate since 1991 in February and planned to continue doing so.
The euro was also higher against the U.S. dollar, with EUR/USD rising 0.14% to hit 1.3767.
Later Thursday, the U.S. was to publish government data on durable goods orders and initial jobless claims, as well as a report on new home sales.
ForexPros.com
