Mixed and confusing data out of the UK: on one hand, manufacturing production is down 0.6% on the month and only 1% up y/y, below expectations. On the other hand, the wider industrial production is up 0.4%, much better than expected and 2.1% y/y.
GBP/USD is trading choppily but doesn’t pick a new direction.
The UK was expected to report an advance of 0.1% in manufacturing production in May, after a slide of 0.4% in April. Year over year, expectations stood on a rise of 1.8%. The wider industrial output figure carried expectations for a drop of 0.2% and +1.6% y/y.
GBP/USD traded heavily towards the publication, around 1.5532. The low has been 1.5526 and the high of the day has been just above 1.56.
The fall out from the Greek referendum is stimulating a “risk off” environment. This is helpful for the dollar and the yen, but very unhelpful for every other currency. This naturally hurts the euro, but also commodity currencies and eventually pound sterling, which has shown relative resilience for quite a while.
More: GBPUSD forecast.
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