The euro (EUR) falls against the British pound (GBP) for a third straight day on Wednesday, with bearish support testing at 0.8700 at the time of writing. The pound is outperforming the single currency amid positive market sentiment due to the ceasefire in Iran.
News that the United States and Iran had reached an agreement on a two-week ceasefire that includes reopening the critical Strait of Hormuz boosted risk appetite on Wednesday, sending the euro and pound soaring against the safe-haven U.S. dollar.
The agreement was reached less than two hours before U.S. President Donald Trump’s deadline of 8 p.m. Easter time on Tuesday (00:00 GMT on Wednesday) and after a grim statement by the U.S. president that “the entire civilization will die” if Iran did not accept his demands.
As macroeconomic events gained importance in the wake of the ceasefire, data from the UK and the euro zone did not improve investor sentiment. UK house prices across the EU fell in March contrary to expectations, growth in factory orders in Germany was lower than expected, manufacturer prices continued to fall and retail sales fell.
However, the data for the euro zone concern the month of February, before the start of the war in Iran, and therefore were practically ignored by the market.
On Tuesday, European Central Bank (ECB) officials Dimitar Radev and Pierre Wunsch reiterated the bank’s concerns about rising inflation risks, with the latter advocating an interest rate hike as early as April. These comments contrast with the Bank of England’s “wait and see” stance. and provides some support for the euro.
Economic indicator
Producer price index (m/m)
Producer Price Index (PPI) published by the Central Statistical Office Eurostat is an indicator measuring the change in prices obtained by domestic producers of goods at all stages of processing (raw materials, semi-finished products and finished products). Generally speaking, a high reading is seen as positive (or bullish) for the EUR, while a low reading is seen as negative (or bearish).
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Last release:
Wed 08 Apr 2026 09:00
Frequency:
Monthly
Actual:
-0.7%
Agreement:
-0.7%
Previous:
0.7%
Source:
Eurostat
Economic indicator
Retail Sales (m/m)
Retail sales data released by Eurostat measures the volume of retail sales in the euro area on a monthly basis. It shows the short-term performance of the retail sector, which accounts for around 5% of the total value added of euro area economies. Retail sales data are widely used as an indicator of consumer spending. Percentage changes reflect the rate of change in these sales, with the monthly reading comparing sales volumes in the reference month with the previous month. Generally speaking, a high reading is seen as bullish for the euro (EUR), while a low reading is seen as bearish
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Last release:
Wed 08 Apr 2026 09:00
Frequency:
Monthly
Actual:
-0.2%
Agreement:
-0.2%
Previous:
-0.1%
Source:
Eurostat
