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Pound approaches one-month low versus Euro before retail sales

Pound approaches one-month low versus Euro before retail sales

The pound approached a one-month low against the 17-nation common currency before a report that economists said will show U.K. retail sales declined in March.

Furthermore, Sterling data was the catalyst that caused the initial moves, but the lack of BoE action promptly reminded investors that being too short- sterling, probably doesn’t make sense at this stage, especially as the IMF revised German growth lower, Italian and Spanish growth to -1.5 % and French growth to -0.1 %.

However, the Euro edged higher against the Dollar on Thursday, gains seemed to remain limited as concerns over the outlook for global economic growth continued to weigh on risk appetite.

The Euro also remained under pressure after European Central Bank Governing Council member Jens Weidmann said on Wednesday that the bank could cut interest rates if economic data indicated that it was warranted.

On the FX Markets, GBP/USD trended lower on Wednesday, underpinned by the release of the latest MPC meeting minutes, as well as the release of less than impressive jobs report. Technical support levels are seen at 1.5178, the 62% retracement of the January to March sell-off and then at 1.5122.

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