British manufacturing production fell by 0.1% in December. This is very disappointing as expectations stood on a rise of 0.5%, similar to last month’s 0.6% rise. GBP/USD is rather stable at 1.6033, as tensions towards the rate decision mount. This is the first fall in manufacturing production in 8 months. The wider figure, industrial production, rose by 0.5%, as expected. The focus is on manufacturing, which is 80% of the whole industry. The fall could be related to the bad weather felt in Britain during December. The pound and the euro fell earlier in the day against the US dollar. This is related to the greenback’s strength rather than anything from these currencies. GBP/USD fell from the 1.6110 resistance line to 1.6040 before the release, and is now trading only marginally lower. Very strong support is found at 1.60, the round number which was also the peak in August. It’s followed by minor lines at 1.5910 and 1.5840. Looking up, 1.6110 is resistance, followed by the mighty 1.63. While manufacturing production is an important release, cable traders are expecting a much bigger event – the rate decision. In many occasions, this was a non-event, as everybody expected an unchanged rate at 0.50%. This time, as inflation is on the rise, there were already two members voting for a rate hike in the previous decision. A majority of 5 out of 9 is needed. With governor Mervyn King still opposing a rate decision, the chances are slim. Does this fall in industrial output convince everybody that the bank should wait? Not necessarily, as it relates to December, while January’s PMI figures have shown a far better picture of the economy. Here’s a preview for the British rate decision. These are very interesting times for the Bank of England and the British pound. Further reading: GBP USD Weekly forecast. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Forex Market Interview with Senior Currency Strategist, John Kicklighter Yohay Elam 12 years British manufacturing production fell by 0.1% in December. This is very disappointing as expectations stood on a rise of 0.5%, similar to last month's 0.6% rise. GBP/USD is rather stable at 1.6033, as tensions towards the rate decision mount. This is the first fall in manufacturing production in 8 months. The wider figure, industrial production, rose by 0.5%, as expected. The focus is on manufacturing, which is 80% of the whole industry. The fall could be related to the bad weather felt in Britain during December. The pound and the euro fell earlier in the day against the US dollar.… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.