The UK manufacturing sector is not doing so well. While this isn’t a huge surprise, it isn’t good news. Manufacturing production rose by only 0.1% instead of 0.3% expected in the month of March. This was countered by a small upwards revision to -0.9% for the previous month. Year over year, production fell 1.9% as expected and also here, it was accompanied with a small upwards revision to -1.6% for the previous month.
GBP/USD remains pressured to the downside, edging closer to the round 1.44 level.
The wider industrial output saw a similar pattern: a rise of only 0.3% m/m against +0.5% expected but a positive surprise with a drop of 0.2% instead of -0.4% expected. With so many misses on UK data, one gets a sensation that things could have been worse. However, the pound remains vulnerable.
UK industrial output was expected to rise month over month but drop year over year. The same goes for manufacturing production.
GBP/USD was front-running the event with a drop to 1.4420 ahead of the publication. Early anticipation in the case of UK events is certainly not uncommon.
The Brexit debate continue grabbing most of he attention when it comes to sterling. For cable, the comeback of the greenback has been the dominant move.
Support awaits at 1.4370, followed by 1.4280. Resistance awaits at 1.4440 and 1.4510. Later today we have an updated GDP estimation by the NIESR institute. Here is how it looks on the 30 minute chart: the move began before the publication and is extending afterwards.