GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP fell 0.24% against the USD and closed at 1.5357, following the release of downbeat industrial and manufacturing production data in the UK.
Data showed that manufacturing production in the UK unexpectedly dipped 0.8% MoM in July, against market expectations for an increase of 0.2%, similar to June’s record. Industrial production also contracted 0.4% on a monthly basis in July, compared to market forecasts for an expansion of 0.1%, thereby heightening concerns over the economic outlook of the nation’s economy.
Other economic data indicated that UK’s goods trade deficit expanded more than expected to £11.08 billion in July, compared to June’s deficit of £8.50 billion.
Additionally, leading think-tanker, NIESR, indicated that UK GDP growth slowed to 0.50% in the June-August 2015 period, compared with 0.6% estimate in the three months to the end of July.
In the Asian session, at GMT0300, the pair is trading at 1.5354, with the GBP trading a tad lower from yesterday’s close.
Overnight data revealed that UK’s RICS house price balance rose more than expected to 53.0 in August, after registering a level of 44.0 in the previous month.
The pair is expected to find support at 1.5334, and a fall through could take it to the next support level of 1.5314. The pair is expected to find its first resistance at 1.5390, and a rise through could take it to the next resistance level of 1.5426.
Going forward, the BoE will announce its interest rate decision, scheduled in a few hours.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
