UK Industrial Production Beats Expectations in May
THE TAKEAWAY: UK Industrial production rises 0.7% in March -> PMI’s point to further economic growth -> Pound trading steady
UK Industrial Production rose by 0.7% in March, beating expectations for industrial output to only rise 0.2%, but not as good as the 0.9% increase in production seen in February. Industrial production fell by 1.4% from March 2012, according to the UK Office for National Statistics.
Manufacturing production rose by 1.1% in March, the biggest rise in factory output in three months and higher than expectations for a 0.3% rise in production.
The UK economy expanded by 0.3% in Q1 of this year, missing a triple dip recession by one quarter. The PMI for manufacturing reached a three month high of 49.8 in April, which combined with the Services PMI, signals further UK economic growth. Improved economic growth is Pound positive.
However, despite an initial spike following the release, the Pound did not sustain any gains on the better than expected report. GBP/USD is currently trading above 1.5550, and resistance might be seen by a 2-month high at 1.5606.
Later in the session, the Bank of England will announce the interest rate decision and asset purchase target for May.
(How does a Currency War affect your FX trading? Take our free course to find out!)
GBPUSDDaily: May 9, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.