The EUR/USD pair lost momentum near 1.0810 yesterday, following European Central Bank (ECB) President Christine Lagarde's dovish comments in her press conference and the ECB's rate cut. However, Thursday's solid US Retail Sales report and market expectations of a nominal interest rate cut by the Fed strengthened the Greenback, limiting the currency pair's downside. US Retail Sales increased by 0.4% month-over-month in September, beating the 0.1% gain recorded in August and the forecasted 0.3% increase. On the Euro front, the ECB reduced its Main Refinancing Operations Rate and the Rate on Deposit Facility by 25 basis points to 3.40% and 3.25% respectively. ECB President Lagarde's comments suggested cooling price pressures and stability in the Eurozone economy. However, she refrained from committing to a predefined rate cut path, hinting at a data-dependent approach for upcoming interest rate decisions. In the absence of major market-moving data, the Euro to USD exchange rate will be driven by broader market sentiment around central bank policies and any geopolitical developments.

EUR/GBP Softens Following UK Retail Sales Figures

The EUR/GBP pair declined to around 0.8305 after the September UK Retail Sales data release. UK retail sales increased by 0.3% month-over-month in September, up from a 1.0% rise in August, beating expectations of a 0.3% decline. Annual Retail Sales climbed 3.9% in September, versus 2.3% (revised from 2.5%) prior, above the forecast of 3.2%. In the Eurozone, the ECB's decision to reduce the deposit rate to 3.25% has exerted selling pressure on the Euro. Today's Eurozone Current Account for August, along with market sentiment surrounding the Bank of England's upcoming interest rate decision, could influence the EUR/GBP exchange rate in upcoming sessions.

GBP/USD Buoyed by Robust UK Retail Sales Data

The GBP/USD pair climbed to 1.3025 following the upbeat UK Retail Sales data. Retail Sales, a key measure of consumer spending, increased by 0.3%, beating the forecasted decline of 0.3% month-on-month. Additionally, Wednesday's Consumer Price Index (CPI) data printed at 1.7%, below the BoE's 2% target, supporting Sterling. On the US front, Thursday's strong US Retail Sales and a healthy labour market benefited the USD. Apart from the UK's Retail Sales data, today's US housing market data – Building Permits, Housing Starts, and Fed Governor Christopher Waller's speech will be driving factors for the Pound to US Dollar exchange rate.

GBP/AUD Holds Steady After Robust UK Retail Sales Data

The Pound to Australian Dollar exchange rate held steady following the upbeat UK Retail Sales data. Retail Sales grew by 0.3% in September, rather than contracting 0.3%, indicating a recovery in the UK economy. Additionally, Wednesday's Consumer Price Index (CPI) data indicated controlled inflationary pressures, strengthening anticipations that the Bank of England (BoE) could cut interest rates in all the remaining meetings. On the Aussie front, Thursday's stronger-than-expected domestic employment data showed that the Unemployment Rate remained steady at 4.1% in September, below the market forecast of 4.2%. The RBA's hawkish stance and bets on Chinese interest rate reductions could support the AUD, influencing the GBP/AUD pair in upcoming sessions.

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