Talking Points
- The latest UK data on industrial production and trade missed analysts’ expectations.
- GBP/USD fell and EUR/GBP rose.
- Check out our brand new Trading Guides: they’re free and have just been updated for the third quarter of 2017
In this webinar, DailyFX Analyst and Editor discusses the outlook for the British Pound and London stocks before and after the release of a disappointing set of UK industrial production, manufacturing output and trade figures for May.
The data weakened the British Pound against both the US Dollar and the Euro as they make a near-term increase in UK interest rates less likely.
Chart: GBP/USD Five-Minute Timeframe (July 7, 2017)
GBP/USD is now more likely to challenge support at or just below 1.26 rather than resistance at 1.30 and above. However, much will depend on the upcoming releases of average earnings and consumer price inflation numbers, which the Bank of England’s rate-setters will want to see before making a decision on interest rates. That decision is likely to be the key influence on the Pound in the weeks and months ahead.
--- Written by Martin Essex, Analyst and Editor
To contact me, email me at martin.essex@ig.com
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