RTTN: Pound Slides To Fresh 6-month Low Against Euro
(RTTNews) - Friday in early deals, the U.K.'s sterling edged lower against its major counterparts as some profit taking intensified in the market. Although the U.K. market is closed on account of the royal wedding, weakness in some of the European bourses also drove investors away from high-yielding currencies.
The pound reached 0.8939 against the euro around 6:15 am ET, the lowest level since October 25, 2010. On the downside, 0.8950 is seen as the next likely target level for the sterling. The euro-pound pair is presently trading at 0.8930.
Eurozone inflation accelerated for a fifth consecutive month in April, preliminary data from Eurostat showed today. The harmonized inflation rose to 2.8 percent from March's 2.7 percent. Economists had forecast the rate to hold steady at 2.7 percent.
The European Central Bank targets inflation "below, but close to 2 percent." Eurozone inflation has held above 2 percent since December.
Eurozone unemployment rate was unchanged from the previous month in March, after falling in February, data from Eurostat showed today. The seasonally adjusted jobless rate was 9.9 percent, unchanged from February, when it fell from 10 percent. The figure was in line with economists' expectations.
Meanwhile, Germany's retail sales declined unexpectedly by 2.1 percent month-on-month in March compared to a 0.4 percent fall in the previous month, data from the Federal Statistical Office showed today. The consensus forecast called for a monthly growth of 0.2 percent.
On a yearly comparison, retail sales fell by 3.5 percent, reversing last month's 1.5 percent growth. Economists had expected retail sales to rise 1.4 percent.
The sterling slipped to a 2-day low of 135.36 against the yen and 1.4418 against the Swiss franc around 6:50 am ET and both pairs leveled off shortly. On the downside, the pound may find target levels at 134.10 against the yen and 1.43 versus the Swiss franc.
The Swiss franc advanced after the Swiss National Bank Governing Board Chairman Philipp Hildebrand said that risks to price stability are emerging and the central bank stands ready to take all measures necessary to ensure price stability in the country.
The pound erased its early morning profits against the US dollar in early European trading on Friday. The pound reached a low of 1.6641 against the greenback around 6:15 am ET from its Asian session highs of 1.6693. The cable is currently quoted at 1.6674.
Looking ahead, the U.S. personal income and spending data for March, Chicago PMI and the University of Michigan's final report on consumer confidence-both for April are due for release in the upcoming New York session.
