EUR/GBP maintains losses about 0.8400 after German retail sales, attentive to CPI data

• The EUR/GBP remains subdued after mixed German retail sales published on Friday.
• The euro could recover land as commercial tensions between the United States and the European Union decrease.
• The GBP receives support after the elevation of the GDP growth of the United Kingdom by the IMF for the current year of 1.2% from 1.1%.

The EUR/GBP goes back after registering more than 0.50% of profits in the previous session, quoting around 0.8420 during Friday’s Asian hours. The crossing of currencies maintains losses after the publication of the retail sales data of Germany. The operators focus their attention on the consumer price index (CPI) data that will be published later in the day.

German retail sales grew by 2.3% year -on -year in April, exceeding the expected increase of 1.8%. The previous growth was 3.3% (reviewed from an increase of 2.2%). However, the monthly data showed a 1.1% drop in April, compared to 0.2% expected and the previous 0.9% profits.

However, the EUR/GBP crossing shot since the euro (EUR) received support from the decrease in commercial tensions between the United States (USA) and the European Union (EU). President Trump delayed the deadline of tariffs on EU imports from June 1 to July 9. Meanwhile, Brussels also agreed to accelerate commercial conversations with the United States to avoid a transatlantic trade war.

On Wednesday, the member of the Governing Council of the European Central Bank (ECB), Klaas Knot, said that the current perspective of inflation in Europe is uncertain, challenging the Central Bank to make direct movements. On Tuesday, the person in charge of ECB, François Villeroy de Galhau, said that the “normalization of policy in the euro zone is probably not complete.”

The EUR/GBP cross faces the low pressure since the sterling pound (GBP) attracts buyers after the elevation of the growth forecast of the Gross Domestic Product (GDP) of the United Kingdom by the International Monetary Fund (IMF) for the current year to 1.2% from 1.1%.

The sterling pound also receives support from the decrease in market expectations that the Bank of England (BOE) again reduces interest rates at the June policy meeting. Moderate bets are weakened around the policy perspective of the Bank of England (BOE) after the consumer price index (CPI) of the United Kingdom more expected and a solid growth in retail sales data of the United Kingdom for April.