The euro versus the dollar traded mostly lower yesterday after weak economic data released. France has been a problem child for Europe , given its poor growth , raising concern among investors that the country will slip back into recession . However, the major concern , Germany, the economic engine of the euro zone, is also beginning to show weakness in economic data and the worrying aspect for the euro. PMI index for the euro area has shown that both the manufacturing and services sectors are faced with constraints in February . Therefore, we think that Europe ‘s central bank may be forced to remain accommodative for a longer period of time , until or unless fundamentals are addressed. .While other central banks including the Bank of England may potentially much earlier than its original plan to raise the rate, the central bank will follow suit Europe may not all, due to the improvement a weak, fragile and uneven.
However, recent economic data released in Great Britain , has made many investors cautious. However , retail sales data is due at 09:30 GMT, traders today can be surprising for a number of reasons . For example, the British Retail Consortium confirmed that retail demand is at its strongest level compared to the last two and half years . In addition, initial jobless claims fell in the last month than many expected, and on top of that , the average revenue increase of more than predicted . The net effect is an increase in consumer demand , which we think might be of higher retail today . If the final count comes in at a better level , we can be a protests in the GBP / USD pair and see the FTSE 100 could rally behind the news .