British Pound Soars, U.K. Factory-Production Data Better-Than-Expected
Talking Points:
- Industrial Production and Manufacturing Production Better-than-Expected
- British Pound Rises Against the US Dollar After Data Crossed the Wires
- Focus Turns to Bank of England Rate Decision Later This Week
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U.K. factory-production activity output jumped in February as both industrial- and manufacturing- production beat expectations. Output growth was expected to slow, but the GBPUSD surged on the better-than-expected data. Industrial production output rose by 2.7 percent year-on-year in January, and Manufacturing production year-on-year reported at 3.8%.
|
Release |
Actual |
Survey |
Previous |
|
UK Industrial Production (MoM) (Feb) |
0.9% |
0.3% |
0.0% |
|
UK Industrial Production (YoY) (Feb) |
2.7% |
2.2% |
2.8% |
|
UK Manufacturing Production (MoM) (Feb) |
1.0% |
0.3% |
0.3% |
|
UK Manufacturing Production (YoY) (Feb) |
3.8% |
3.1% |
3.2% |
The British Pound surged against the US Dollar after the data crossed the wires, but the move may reflect speculation of an imminent rise in the benchmark interest rate. Earlier in the week GBPUSD rebounded from the year open and Technical Strategist Jamie Saettele sees resistance at 1.6712 then 1.6767. Market Analyst David de Ferranti held a neutral bias on GBPUSD, but notes that candlestick analysis shows resistance at 1.6770.
GBP/USD 5-Minute Chart. April 8, 2014. Charted created using FXCM Marketscope 2.0.
-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to [email protected].
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