• EUR/GBP treads water around 0.8675 after rejection at 0.8690 on Thursday.
• Mixed German data has failed to provide support to the Euro on Friday.
• The pair is on track for a 0.3% weekly decline and a 1.5% sell-off from mid-November highs.

The Euro is trading flat in the area of 0.8675 on Friday’s early European session, halfway through the weekly range, following mixed macroeconomic data from Germany. From a wider perspective, the pair is on track for a 0.3% weekly loss and a 1.5% sell-off from mid-November highs above 0.8800.

German data released earlier on Friday revealed that Industrial Production grew 0.8% in November, following a 2.0% increase in the previous month, against market expectations of a 0.4% decline.

The trade surplus, on the other hand, narrowed to €13.1 billion in November, from €16.9 billion in October, below the €16.5 surplus anticipated by the market consensus. Exports dropped 2.5%, against market expectations of flat performance, reactivating concerns about the outlook for the Eurozone’s leading economy.

Later on Friday, Eurozone retail sales are expected to show a 0.1% uptick in November after a 0% reading in October. Year-on-year, retail consumption is expected to have accelerated to 1.6% from 1.5% in October.

In the UK, the economic calendar is thin this week. The Pound remains on the defensive following a downward revision of the S&P Global Services PMI on Monday. These figures have raised concerns about a softening economic growth in a context of high inflation, which will pose a headache for the Bank of England, and is keeping the pair from falling further.