UK Trade Data and Industrial Production - Webinar
Sterling Talking Points:
- Industrial production and manufacturing output both missed market expectations.
- GBP slipped back as attention turns to UK Q1 GDP.
- UK-EU trade deficit widened in the three months to February.
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Sterling Slips as UK Industrial Production Slows
GBPUSD edged backed below 1.4200 after data showed that UK production and manufacturing fell in February. The downturn leaves expectations of a 0.3% Q1 GDP print – to be released on April 27 - intact but with modest risks to the downside. The Bank of England downgraded Q1 GDP expectations to 0.3% from 0.4% recently.
Trade data released today showed the UK goods deficit widened by GBP0.2 billion with the EU and narrowed by GBP0.1 billion with non-EU countries in the three months to February 2018. Exports and imports of goods to and from the EU increased, while exports and imports to and from non-EU countries decreased, according to latest Office for National Statistics data.
GBPUSD moved lower post-release, hitting 1.41820 from a day’s high of 1.42240, despite ongoing USD weakness. The sterling trade weighted index also traded as its highest level (80.43) since June 30, 2016 and is up 3% since early March.
--- Written by Nick Cawley, Analyst.
You can contact the author via email at email@example.com or via Twitter @nickcawley1.
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