Manufacturing Production Climbs Most in 10-months, Industrial Production Improves Too
Signs that the UK economy is resuming to grow after taking a knock during severe winter weather got a boost this morning as manufacturing production grew at the fastest pace in 10-months and industrial production continued to grow at a healthy rate. The Office for National Statistic (ONS) reported the manufacturing output rose 1% from December when it contracted by 0.1% beating consensus forecasts for a 0.6% increase. Meanwhile, industrial production grew at 0.5% higher than the expected rate of 0.4%. The year-on-year figures kept up pace too with manufacturing production climbing at the fastest pace (6.8%) since November 1994 and industrial production (4.4%) at its best since December 1994.
Despite climbing off lows pre-release Cable was unable to continue paring its decline after the release. Despite the release macro trends and geopolitics are keeping a firm grip on the markets at present boosting the buck across the board and no data is really shaping price action. Some traders are also likely to remain sidelined with the Bank of England rate decision due at 12:00GMT. On the day Gbp/Usd remains under the cosh and continues to look vulnerable to the downside, with a move back toward 1.6000 in coming days looking likely.
Written by Jonathan Granby, DailyFX Research Team
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.