Manufacturing production in the UK dropped by 0.8% in the month of May. It was expected to rise by 0.3% after a drop of 0.2% in April (before revisions). Industrial production was predicted to rise by 0.3% but remained flat. The UK’s trade balance deficit was estimated to have growth from 8.2 to 8.4 billion pounds and it went up to 8.5 billion. The disappointments hurt the pound.
GBP/USD was cautiously recovering from the “Carney Crash” and making its way up to 1.4980 before the publication. It is now sliding back down quite sharply, trading under 1.4920.
1.50 is the clear line of resistance, followed by 1.5157 and 1.52. Support is found at 1.4830.
The wild move to the downside after Carney’s warning about the rates does not match the improvement in the British economy, as they have been seen until now. These fresh numbers are certainly disappointing.
For more lines, events and analysis, see the GBP/USD forecast.
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