Manufacturing production in the UK dropped jumped by 1%. Early expectations stood on a rise of 0.3%. Trade balance was expected to remain almost unchanged, with the deficit moving down from 8.6 to 8.5 billion pounds. It squeezed to 7.1 billion.
These are good news. GBP/USD ticks up.
GBP/USD already relaxed from its highs above 1.59 and was trading at around 1.5840 prior to the publications. It is now moving higher, crossing the 1.5850 line.
The much bigger event today is the rate decision. The British MPC is expected to leave interest rates unchanged at 0.50% and to expand the Asset Purchase Facility from 275 to 325 billion pounds.
This is a reaction to higher unemployment, contraction in Q4 and the global slowdown, despite some positive signs in January.
For more on the pound, see the GBP/USD forecast.
The pound enjoyed the recent progress in Greece – the good news weakened the dollar and pushed markets towards “risk” assets.
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