News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • RT @FxWestwater: Gold, Iron Ore Forecast: Prices Hinge on FOMC, Evergrande Crisis, China Steelmaking Curbs Link: h…
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here:
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here:
  • We are heading into a Tuesday lull which precedes Wednesday's FOMC focus. Will the absence of distractions allow for risk trends to gain momentum or perhaps will Fed anticipation temper the $SPX tumble? My take:
  • CTV projects Trudeau wins his third term as Canada's Prime Minister - BBG
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here:
  • US House Speaker Pelosi says top-line spending number may change but hopes for $3.5 trillion in spending bill - BBG
  • RBA Minutes: - Board committed to providing high level of monetary support - Q3 GDP expected to decline materially - Central scenario is rates on hold until 2024 - BBG $AUDUSD
  • Heads Up:🇦🇺 RBA Meeting Minutes due at 01:30 GMT (15min)
  • New Zealand reports 14 new local Covid cases - BBG
British Pound Plunges on Weak Industrial Production Report

British Pound Plunges on Weak Industrial Production Report

Oded Shimoni, Junior Currency Analyst

Talking Points:

- Year-on-year Industrial Production at 0.9%, below expectations

- Manufacturing Production dropped -0.4% in November, below expectations

- British pound lower versus other major currencies

See how retail traders are positioning in the majors in your charts using the FXCM SSI snapshot.

The British Pound dropped versus other major currencies (at the time this report was written) after today’s industrial production report came well below expectations. The report showed industrial production fell -0.7% in November, below the prior 0.1% rise and the expected 0.0% figure. The Year-on-year figure printed an increase of 0.9%, which was below the prior and expected reading of 1.7%. Industrial Production measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities. The manufacturing output, which account for approximately 80% of overall industrial production, printed -0.4% in November, which was below a rise of 0.1% expected by economists. The year-on-year figure fell -1.2%, below the expected -0.8%, and marked the fifth consecutive decline.

Looking into the report, the Office for National Statistics said there were decreases in all of the main sectors, with manufacturing, mining, electricity & gas having the largest contribution to the decrease in total output. The report is in line with last week’s Markit Manufacturing PMI which suggested manufacturing will only make a marginal contribution to UK’s economic growth in the final quarter of 2015. With imported disinflation from the Eurozone, the latest figures seemed to have added further evidence to the growing likelihood of a later than previously expected rate hike by the BoE, and the British pound was lower versus other major currencies.

DailyFX Quantitative Strategist David Rodriguez recently said that the BoE is almost certain to keep interest rates and its asset purchase program unchanged at Thursday’s meeting.

British Pound Plunges on Weak Industrial Production Report

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.