GBP/USD: Britain’s manufacturing and industrial production climbed above expectations in September, construction output dipped in the same month


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP rose 0.41% against the USD and closed at 1.3197 on Friday, after a string of upbeat economic reports from the UK pointed to healthy economic conditions in the nation.

Britain’s industrial production climbed more-than-anticipated by 0.7% MoM in September, rising at its fastest pace this year and following a revised gain of 0.3% in the previous month. Markets were expecting industrial production to advance 0.3%. Moreover, the nation’s manufacturing production rose more-than-expected by 0.7% on a monthly basis in September, surging to its highest since December 2016. Market participants had expected manufacturing production to climb 0.3%, after recording a rise of 0.4% in the prior month. However, the nation’s construction output retreated more-than-estimated by 1.6% on a monthly basis in September, compared to a revised advance of 0.8% in the previous month, while investors had envisaged for a fall of 0.9%.

Another set of data revealed that the nation’s total trade deficit surprisingly narrowed to £2.8 billion in September, compared to market consensus for it to widen to £4.3 billion. The nation had reported a revised total trade deficit of £3.5 billion in the prior month. Further, leading think tanker, NIESR estimated that UK’s gross domestic product (GDP) rose 0.5% in the three months to October, slightly stronger than the 0.4% expansion projected in the July-September period.

In the Asian session, at GMT0400, the pair is trading at 1.3122, with the GBP trading 0.57% lower against the USD from Friday’s close, amid news that a group of 40 Conservative lawmakers have agreed to sign a letter of no confidence against the British Prime Minister, Theresa May.

Data released overnight showed that UK’s Rightmove house prices fell 0.8% on a monthly basis in November, after recording a gain of 1.1% in the preceding month.

The pair is expected to find support at 1.3076, and a fall through could take it to the next support level of 1.3030. The pair is expected to find its first resistance at 1.3199, and a rise through could take it to the next resistance level of 1.3276.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

This entry was posted in GBP/USD. Bookmark the permalink.

Comments are closed.