EUR/GBP holds steady beneath 0.8690 as German data presents a mixed picture

Euro Holds Steady Amid Mixed German Economic Reports

The Euro remained largely unchanged around 0.8675 during early trading hours in Europe on Friday, settling near the midpoint of its weekly range. This stability comes after Germany released a blend of positive and negative economic indicators. Overall, the currency pair is poised to record a 0.3% decline for the week and has retreated 1.5% since reaching highs above 0.8800 in mid-November.

German Economic Data Sends Mixed Signals

On Friday, Germany reported that Industrial Production rose by 0.8% in November, following a 2.0% increase in October. This result surprised analysts, who had predicted a 0.4% decrease. However, the country’s trade surplus shrank to €13.1 billion in November from €16.9 billion the previous month, falling short of the €16.5 billion surplus expected by economists. Exports fell by 2.5%, contrary to forecasts of stable performance, reigniting worries about the future prospects of the Eurozone’s largest economy.

Later in the day, Eurozone retail sales figures are anticipated to show a modest 0.1% increase for November, following a flat reading in October. On an annual basis, retail sales growth is expected to pick up slightly to 1.6%, compared to 1.5% in the previous month.

Pound Under Pressure Amid Sparse UK Data

In the United Kingdom, the economic calendar remains relatively quiet this week. The British Pound continues to face downward pressure after Monday’s downward revision of the S&P Global Services PMI. These results have heightened concerns about slowing economic momentum amid persistent inflation, presenting challenges for the Bank of England and preventing the currency pair from declining further.