GBP trading weak post dismal UK industrial production numbers - BBH

Sandeep Kanihama FXStreet Contributor

Research Team at BBH, notes that the UK industrial output fell by 1.3% in October while the median forecast was for a small increase.

Key Quotes

“While oil and gas took a toll (one of the large North Sea fields was closed for maintenance), manufacturing output slumped by 0.9%. A small gain was expected. The decline was sufficient to push the year-over-year rate into contraction (-0.4%) for the first time since March. Last week's PMI warned of further slowing in manufacturing in November.”

“Sterling was near two-month highs yesterday, reaching $1.2775. It was sold off to almost $1.2580 today. It appears to have found a bid, but it may be difficult to resurface above $1.2650. The euro had begun the week at nearly four-month lows against sterling just ahead of GBP0.8300. It traded a little above GBP0.8520 today but is running into offers as the 20-day moving average is approached (~GBP0.8530). The euro has not traded above this moving average since the US election.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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