The British pound is on the move, not waiting for the BOE’s “Super Thursday”. Sterling is falling as all the figures align to the downside. GBP/USD dropped some 25 pips and trades at 1.2917.
The goods trade balance showed a wider than expected deficit: 13.4 billion against 11.7 predicted. Industrial output is down 0.5%, slightly worse than 0.4% predicted. The narrower manufacturing output number is down 0.6% instead of 0.2% that was on the cards. The disappointment with the largest magnitude came from construction output: a drop of 0.7% against a rise of 0.3% that was projected.
When all the figures go in one direction, so does the currency. Here is the 30-minute chart demonstrating the slide. Support awaits at 1.29, followed by 1.2770. Resistance is at 1.30.
BOE coming soon
The Bank of England will deliver its decision at 11:00 GMT. A gloomier tone is on the cards. See the BOE Preview. Governor Mark Carney and his colleagues may be a bit cautious on forecasts as their meeting comes out just four weeks ahead of the UK elections. Carney has been criticized for making dark Brexit projections that haven’t materialized in 2016. However, 2017 already looks worse.
Carney has been criticized for making dark Brexit projections that haven’t materialized in 2016. However, 2017 already looks worse. The economy grew by only 0.3% in Q1 2017 and the figures released today were not the only ones that fell short of early expectations.