The Euro fails to recover against the Pound despite upward revisions to German GDP and improved consumer confidence figures.
The Euro remains near 0.8650 against the British Pound, extending its weekly decline to 0.85%. German GDP data showed the economy grew 0.3% quarter-on-quarter in Q1, unchanged from the prior period, while yearly growth was revised up to 0.4% from 0.3%. Consumer confidence also improved to -29.8 in June from -33.1 in May, beating expectations of -34.
Despite the positive data, the Euro has struggled to gain traction. Meanwhile, UK retail sales contracted 1.3% in April, more than double the expected decline, yet the Pound shrugged off the weakness. Market focus has shifted toward political stability concerns easing in the UK and stronger business activity relative to the Eurozone.
The EUR/GBP pair shows limited reaction to the mixed data, reflecting broader uncertainty over monetary policy divergence between the Bank of England and the European Central Bank.