UK industrial production slides 0.1% in January, short of expectations. Year over year, a rise of 1.3% is reported, as expected. Manufacturing output falls 0.5% and rises only 1.9% y/y, below expectations.
GBP/USD slides to 1.5040.
UK industrial output was expected to rise 0.2% m/m and 1.2% y/y. Manufacturing production carried predictions for a 0.2% advance as well, and 2.6% y/y.
Before the publication, GBP/USD traded around 1.5065, weathering the US dollar storm.
BOE’s Mark Carney has been relatively optimistic about the UK economy in a public appearance yesterday, in line with recent speeches. The UK is expected to see higher rates this year, but well after the elections. With less than two months to go towards the elections, there is some uncertainty looming over the pound, but it isn’t that huge.
The US dollar has been storming the board, with multi-year record levels in EUR/USD, USD/JPY and AUD/USD. On the other hand, the pound stood out from the crowd: cable has not dipped below 1.50. In addition, it is advancing very nicely against the euro, with GBP/EUR leaving 1.40 behind, or EUR/GBP edging closer to 0.70.
More: GBP/USD: Wedge Breakout; – Goldman Sachs
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