The United Kingdom’s trade deficit widened to 12.409 billion pounds in June, worse than 10 billion expected. In addition, the figure for May was revised down from 9.88 to 11.53 billion. This is an extension of a phenomenon that began earlier in the year.
Also, manufacturing data is not too good: production dropped by 0.3, slightly worse than 0.2% expected and on top of a downwards revision. Year over year, manufacturing output is up 0.9%, less than 1.3% predicted and below projections. The wider industrial production figure met expectations with +0.1% m/m and +1.6% y/y.
The figures are for the month of June, pre-Brexit. The referendum was held on June 23rd. However, there may have been a run up towards the event.
GBP/USD remains depressed under 1.30.
Earlier, the pound slipped below the round number due to comments by Ian McCafferty. The MPC member that previously voted for a rate hike made some dovish statements. He said the Bank could further cut rates and also print more money.
— more coming
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