EUR/GBP retreats to fortnight low on Sterling’s recovery

The clear winner for Friday is the Sterling. The EUR/GBP pair is retreating into 0.8660 despite the strengthening of the pound sterling on Friday. Next week’s economic schedule includes the UK GDP and EU retail sales in the latter half.

As the market approaches the weekly closing bell, the EUR/GBP is retreating towards 0.8660, and the GBP’s rebound from its recent lows of several months is pushing the pair down to levels not seen in nearly three weeks.

This week, the Euro and the Pound Sterling traded in a choppy range, mostly flat, before a broad market sentiment recovery sparked by a missed US Nonfarm Payrolls report sparked risk appetite for investors in the final moments.

With the UK GDP forecast to rise, the pound is expected to see another spike in volatility on Friday. High-quality data for the EU and the UK are scheduled for the latter part of next week, with EU Retail Sales on Wednesday and UK GDP numbers on Friday.

While UK GDP is predicted to soften for the third quarter, forecast to print at -0.1% compared to the previous quarter’s 0.2%, EU retail sales are currently expected to decline further for the year into September, forecast at -3.1% compared to the previous -2.1%.