A slowdown in UK manufacturing hits the pound: a drop of 0.7% m/m in manufacturing production contrary to +0.2% expected. Year over year we have a rise of 1.7% in comparison to 3.2% predicted. Industrial output dropped by 0.1% below a rise of 0.2% expected and year over year we have a rise of only 1.1%, significantly under 1.8% forecast.
GBP/USD trades below 1.5650, sliding from the highs of the day.
The UK was expected to report a rise of 0.2% in manufacturing production in October after +0.4% in September (before revisions). The wider industrial output number carried expectations for a rise of 0.3% after 0.6% beforehand.
Last week, the manufacturing purchasing managers’ index edged up, and still pointed to growth.
GBP/USD was on a recovery path towards the publication, trading around 1.5680 The high of the day was 1.5693.
Later in the day, we have the GDP estimate for the three months ending in November by NIESR.
The greenback extended its slide, retracing the NFP related gains.
More: 1.5580 could be support in GBP/USD: Elliott Wave Analysis
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