Manufacturing output in the UK rose by 0.1% m/m and 2.4% y/y. Industrial output rose 0.1% and 0.5% year over year.
GBP/USD is now ticking up after sliding beforehand.
The UK was expected to report a rise of 0.1% in industrial production in December m/m and +0.7% y/y. manufacturing production carried expectations for a slide of 0.1% m/m but a gain of 1% y/y.
GBP/USD slid from a tight range and traded around 1.5220 towards the publication.
The British pound got a boost last week from a series of positive purchasing managers’ indicators, all pointing to stronger growth in the economy. However, with the Bank of England set to leave rates unchanged throughout most of the year, cable faces a struggle as the US is now set to raise rates earlier.
The big event for sterling this week is the release of the BOE’s Quarterly Inflation Report. This event provides Carney and co. an opportunity to set out their forecasts for employment, growth and inflation.
Many economists are still bearish on cable, with one bank seeing 1.38 on GBP/USD.
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