Euro holds losses against British Pound despite stronger German Retail Sales

The EUR/GBP cross is trading in negative territory around 0.8605 during early European trading on Tuesday. The euro continues to struggle against the British pound, failing to gain traction despite stronger-than-expected German retail sales figures.

German retail sales data for the latest period came in above forecasts, offering a rare bright spot for the eurozone economy. However, the positive release was not enough to lift the single currency, as broader market sentiment and lingering uncertainty around the eurozone outlook kept the euro under pressure against sterling.

Traders are now looking ahead to further economic releases and any comments from central bank officials for clues on the next directional move in the EUR/GBP cross.