GBP-EUR boosted by lending data while EUR is hit by unemployment figures but rise in inflation provides support

Boosting the pound euro exchange rate was the latest data from the Bank of England that showed net mortgage lending, which lags approvals, rose by a strong 875 million pounds, well above expectations and its highest since December.

(Please Note: The above quotes are taken from the wholesale currency markets; your bank will affix their own discretionary spread to the numbers. However, an independent FX provider will guarantee to beat your bank's offer thus delivering you more currency. Please find out more here.)

Also supporting gains in GBP-EUR was further news from the Bank of England that showed unsecured lending to consumers rose by 524 million pounds, above expectations.

Earlier on Friday, market research company GfK reported that consumer sentiment rose to a six-month high in May, though it still remains in the doldrums by historic standards.

Euro pressured by poor German data

Meanwhile, the euro came under broad selling pressure after it was shown that German retail sales fell by 0.4 pct on the month after dropping by an upwardly revised 0.1 percent in March.

That was below the consensus forecast in a Reuters poll for a 0.2 pct monthly gain.

Unemployment figures have also been unhelpful; joblessness in the 17-nation currency area rose to 12.2 percent in April, Eurostat said on Friday, marking a new record since the EU's statistics office started collecting data on the countries in 1995.

Providing support for the euro in mid-morning was the latest inflation data out of the Eurozone - consumer price inflation was far below the ECB's 2 percent target in May, although it ticked up to 1.4 percent from 1.2 percent in April.

That rise may quieten concerns about deflation, but the deepening unemployment crisis is a threat to the social fabric of the euro zone, with almost two-thirds of young Greeks unable to find work and southern Europe facing a 'lost generation'.