It was another tough day for the euro on Wednesday as it slumped to two-week lows against sterling and the US dollar, weakening close to recent eight-year lows against sterling. Pressure on the single currency has been increased amid expectations that a rate hike by the US Federal Reserve in the coming months would prompt the Bank of England (BoE) to follow suit.
The euro wasn’t supported when disappointing retail sales were released in the morning, coming out in the negative at -0.6%, compared to the previous positive figure of 0.2% last month. The Purchasing Managers’ Index (PMI) figures for the Eurozone also fell in what was a disappointing day for the single currency.
Earlier today we have manufacturing orders data from Germany, but other than this it is likely to be a quiet day for data releases for the single currency, with the eye of the financial markets focusing on the UK, and on BoE activity in particular.