The euro surged against the pound on Friday following the release of better-than-anticipated German PPI data for March. The UK’s retail sales data for March missed estimates. There were no other major economic releases on that day. Overall, the EUR/GBP pair rallied from a low of 0.8520 to a high of 0.8615.
According to the data published by the UK’s Office for National Statistics, the country’s retail sales remained unchanged in March following the 0.10% growth in February, missing forecasts of a 0.30% increase.
Automotive fuel sales increased 3.20% m-o-m in March. Likewise, non-food stores recorded a 0.50% rise in sales volumes. However, this was negated by a 0.70% decline in retail sales at food stores. Also, non-store retailers posted a decrease of 1.50%.
Online spending inched up 0.10% m-o-m in March. On a y-o-y basis, online spending grew by 1.70% in March 2024.
Furthermore, sales volumes surged 1.90% in the quarter ended March 2024, compared with the earlier three months. On a y-o-y basis, the UK’s retail sales grew by 0.80% in March, after a 0.30% decline in the previous month.
According to Destatis, the German PPI (producer price input) grew 0.20% m-o-m in March, following a 0.40% decline in the previous month and slightly higher than forecasts of no change.
On a y-o-y basis, German producer prices of industrial products fell by 2.90% in March 2024. In February, German producer prices declined 4.10% on a y-o-y basis.
Energy prices declined 7% y-o-y in March 2024. On an m-o-m basis, energy prices stood unchanged.
Intermediate goods prices fell by 3.70% y-o-y in March 2024. On an m-o-m basis, intermediate goods prices inched up 0.10%.
Non-durable consumer goods recorded an increase of 0.30% y-o-y in March 2024. On an m-o-m basis, non-durable consumer goods prices increased by 0.60%.
Durable consumer goods grew by 1% y-o-y in March 2024. On an m-o-m basis, durable consumer goods prices rose by 0.10%. Capital goods prices increased by 2.80% y-o-y in March 2024. The growth was led by a 3% rise in machinery prices. Likewise, motor vehicles, trailers, and semi-trailers recorded a growth of 2.20%. On a m-o-m basis, capital goods prices inched up 0.20% in March.
The better-than-anticipated German economic data is expected to keep the EUR/GBP pair slightly bullish in the near term.
Technically, the EUR/GBP pair is ascending after testing the support at 0.8550. The next resistance is anticipated to be only near 0.8715. Additionally, the currency pair is trading above its 50-day moving average, while the stochastic indicator is in the bullish zone. Therefore, we anticipate the EUR/GBP pair to remain in an uptrend in the near term.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
