Investing.com – The euro extended gains against the pound on Thursday, after official data showed that retail sales in the U.K. fell more-than-expected in February, underlining concerns over the uneven nature of the country’s economic recovery.
EUR/GBP hit 0.8744 during European morning trade, the pair’s highest since Monday’ the pair subsequently consolidated at 0.8724, gaining 0.54%.
The pair was likely to find support at 0.8653, Wednesday’s low and resistance at 0.8760, the high of March 18 and a four-month high.
Earlier in the day, the Office for National Statistics said sales volumes, including automotive fuel, fell 0.8% last month after a downwardly revised increase of 1.5% in January. That took sales up 1.3% on the year.
Analysts had forecast a fall of 0.6% on the month and an annual rise of 2.3%.
The report said that prices, including fuel, leapt at their fastest monthly pace since 1994, up 2.5%. Excluding fuel, prices were 2.4% higher on the month, the largest increase since records began in 1988.
The pound was also lower against the U.S. dollar, with GBP/USD shedding 0.34% to hit 1.6178.
Also Thursday, Moody's downgraded the credit rating of 30 Spanish banks by one or more notches, though the ratings of the nations largest banks remained untouched, while Portugal moved closer to a financial bailout after the prime minister resigned on Wednesday.
EUR/GBP hit 0.8744 during European morning trade, the pair’s highest since Monday’ the pair subsequently consolidated at 0.8724, gaining 0.54%.
The pair was likely to find support at 0.8653, Wednesday’s low and resistance at 0.8760, the high of March 18 and a four-month high.
Earlier in the day, the Office for National Statistics said sales volumes, including automotive fuel, fell 0.8% last month after a downwardly revised increase of 1.5% in January. That took sales up 1.3% on the year.
Analysts had forecast a fall of 0.6% on the month and an annual rise of 2.3%.
The report said that prices, including fuel, leapt at their fastest monthly pace since 1994, up 2.5%. Excluding fuel, prices were 2.4% higher on the month, the largest increase since records began in 1988.
The pound was also lower against the U.S. dollar, with GBP/USD shedding 0.34% to hit 1.6178.
Also Thursday, Moody's downgraded the credit rating of 30 Spanish banks by one or more notches, though the ratings of the nations largest banks remained untouched, while Portugal moved closer to a financial bailout after the prime minister resigned on Wednesday.