Manufacturing production rose by 1.2% in May. A rise of 0.1% was expected after last month’s drop of 0.7%, now revised to -0.8%. The wider industrial production figure rose by 1%, far better than a drop of 0.1% that was predicted.
Britain’s trade balance deficit squeezed to 8.4 billion pounds in May from the peak of 10.1 billion initial reported beforehand. This was now revised to -9.7 billion. A drop to 9 billion was expected.
GBP/USD managed to recapture the 1.55 line before the publication and continues pushing higher, to 1.5540 at the time of writing.
Earlier in the day, figures weren’t so rosy: the BRC Retail Sales Monitor showed a monthly rise of 1.4%, but on an annual level, it’s flat. In addition, the RICS House Price Balance disappointed by dropping lower in negative ground: from -17% to -22%, worse than an improvement to -15% that was expected.
For more on the pound, see the GBP/USD forecast.
It’s important to note that against the euro, sterling finds itself in levels last seen at the height of the financial crisis: EUR/GBP is at 0.7925, a level recorded in November 2008.
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