UK: Industrial output jumps, trade balance deteriorates - BBH
|Research Team at BBH note that the UK's industrial output rose 2.1% in November, and the October decline was shaved to -1.1% from -1.3%.
Key Quotes
“This is the largest increase in seven months. The year-over-year pace stands at 2.0%. The Bloomberg median forecast was for a 0.7% pace. Manufacturing drove the increase. It rose 1.3% on the month and 1.2% year-over-year.”
“On the other hand, the UK trade balance deteriorated more than expected. The overall trade balance (goods and services) rose to GBP4.167 bln, which is more than 10% larger than anticipated. The October shortfall was revised to GBP1.547 bln from GBP1.971 bln. The deterioration can be accounted for by merchandise trade. That trade deficit widened to GBP12.16 bln from a revised GBP9.885 bln (from GBP9.711 bln). Total imports jumped 8.4%. Imports of transport equipment (e.g., ships and aircraft) rose and the increase (GBP1.4 bln) accounts for around half of the trade deterioration. Exports rose 2.8%.”
“Sterling has traded on both sides of yesterday's range. As we noted, the break of $1.22 earlier this week was the first time in more than two months and is important from a technical point of view. It now is acting as resistance and sterling was sold as this was approached in Asia. Sterling briefly dipped below $1.21 for the first time since October 25. A near-term low may be in place, and another test on $1.22 cannot be ruled out now.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.