Manufacturing production in the UK rose by 0.9%. Early expectations stood on a rise of 0.5%.
GBP/USD is now at 1.6110 after dropping under 1.61 prior to the release. Cable is awaiting a more important event later on.
GBP/USD was falling prior to the release from the higher ground of 1.6140-1.6150 down to 1.61. Support is found at 1.6060, a level it challenged earlier in the week.
Last month’s saw a drop of 1.1%. This is a downwards revision of the figure initially published: -1%. The wider, though less closely watched industrial production edged down by 0.3%. A drop of 0.2% was predicted.
There’s a bigger event later today: the rate decision by the Monetary Policy Committee. Mervyn King and his colleagues are expected to leave the rate unchanged at 0.50%, and also leave the Asset Purchase Facility (or QE program) untouched at 325 billion pounds.
For more, see the GBP/USD forecast.
The crisis in Europe sends money to “safety” of British bonds, but also weighs on the UK: Britain’s trade with Europe is highly important.
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