GBP/USD Plunges To Fresh Session Low After UK Industrial Output Slows
- UK Industrial Production: (MoM) -0.7% Actual Vs 0.3% Estimated; 0.4% Prior.
- UK Industrial Production (YoY) 2.3% Actual Vs 3.2% Estimated; 3.0% Prior.
- GBP/USD Hits Session Low as it Falls 50 pips and Breaks below 1.7100.
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UK Industrial Production, which measures the output of the mining, quarrying and manufacturing industries, registereda 2.3 percent increase year-on-year in May. The short-term gauge of strength in industrial activity decelerated from the prior month’s reading of 2.9 percent and fell short of market expectations of 3.2 percent. Similarly, the month-on-month reading fell sharply from the prior month’s reading of 0.3 percent as it crossed the wires at negative 0.7 percent. This was a significant miss from economists’ expectations for a 0.3 percent increase in a marked degree.
Following the release of the UK Industrial Production figures, GBP/USD plunged to a fresh session low to trade below the psychologically significant 1.7100 level. The Pound lost over 50 pips against the US Dollar to trade at 1.7086. This extensive reaction may have been due to a downward surprise in the UK economic data as the general consensus was for a firm outcome, amid traders speculating about a looming Bank of England (BOE) interest rate hike says DailyFX Currency Strategist Ilya Spivak
DailyFX Currency Analyst David de Ferranti discusses in his Forex Candlestick Summary of nearby noteworthy support at 1.7100 with resistance at 1.7170.
GBP/USD 5 Minute Chart
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Edward Hyon, DailyFX Research Team
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