GBP/EUR declined by around -1.5% this morning and is still currently down by -1.3%. This was in response to the mixed retail sales from the UK. Figures were lower than expected, partly due to wages rising faster than inflation. However, the consensus is that a rate rise in the UK will occur in the early part of next year.
This move was also made worse by a strengthening Euro. EUR/USD has rallied as well after reports that fund managers were buying euros which saw euro head higher. So it’s definitely a great time for EUR sellers!
This afternoon from the U.S., we have initial jobless claims, existing home sales and the Philly Fed manufacturing report. The Philly Fed number will be closely watched for clues for the state of the U.S. manufacturing sector and the overall performance of the economy.