The pound has held against the euro as the week comes to a close.
Despite a slow start to the week, with the exchange rate being below £1.140, it has managed to improve.
Today’s exchange rate is at £1.142, according to Bloomberg.
The positive UK retail sales data has prevented the exchange rate from dropping.
Laura Parsons, currency analyst at TorFX, explained how the pound has moved.
She told Express.co.uk: “UK retail sales might have bounced back in April, but the positive data did little to bolster the pound.
“Retail sales excluding auto fuel were shown to have increased 1.3 per cent month-on-month and 1.5 per cent year-on-year – smashing forecasts for sales growth of 0.4 per cent and 0.1 per cent.
“While the figures indicate an improvement in consumer confidence, the GBP/EUR exchange rate remained trading in the region of €1.140 – even with consumer sentiment sliding in Germany.”
UK retail sales managed to improve in April with a rise to 1.6 per cent.
The increase from March is a welcome improvement for the British economy.
Pound to euro exchange rate: Positive UK retail sales helped improve
Bad weather and the Beast from the East plagued the UK in March and meant retail sales suffered
Bad weather and the Beast from the East plagued the UK in March and meant retail sales suffered, as many were forced to stay at home.
After retail sales increased from last month’s figure of 1.1 per cent, this is the biggest increase in 18 months.
The increase was helped by the sales of clothes, food and petrol, according to the Office for National Statistics (ONS).
Yet the ONS warned the increase was still “subdued” as the volume of sold goods remaining mainly unchanged.
Ms Parsons explained how the exchange rate could move during the bank holiday weekend.
Pound to euro exchange rate: UK retail sales in April improved to 1.6 per cent
She said: “With the weekend rapidly approaching, German IFO confidence indexes and UK growth data might give GBP/EUR reason to move.
“The German indexes are expected to fall, but with UK output not predicted to impress both currencies may remain under pressure.”
How can British holidaymakers make the most of the exchange rate when booking a trip?
Choosing a destination that doesn’t use the euro currency can ensure the money goes further.
Budapest and Slovenia are just some of the cheap holiday destinations to visit where the pound gets more against the local currency.