MARKET OUTLOOK - GBP Declines Against Euro as Eyes Turn to PMI Data

Forex - The pound weakened against the euro following data showing an unexpected decline in retail sales in the UK in October, although it showed little movement against the dollar. Retail sales fell by 0.7% in October compared to the previous month, while economists had expected a 0.2% increase. Phil Monkhouse from Ebury noted that consumers are "fearful of the high street" ahead of the challenging UK government budget expected on October 30. According to Monkhouse, rising energy prices and other cost-of-living concerns have also negatively impacted consumer confidence. Attention has now turned to the UK purchasing managers' data scheduled for 12:30 GMT. The EUR/GBP is currently at 0.8342, having increased by 0.3% compared to 0.8329 ahead of the data release.