UK Production Output Disappoints, Sterling Unfazed

The Great Britain was flat against the US dollar today after economic data from the United Kingdom did not match expectations, being weaker than it was forecast. At the same time, the sterling managed to rally against some other major currencies, including the euro.

Both industrial and manufacturing production fell in January from the previous month even though economists predicted a 0.2 percent increase for both indicators. Meanwhile, UK policy makers remain relatively optimistic, dismissing the negative impact of falling oil prices on inflation as a temporary one. This explains why the pound was resilient despite the negative data.

GBP/USD traded near its opening level of 1.5053 as of 12:13 GMT today after rallying to 1.5096 earlier. EUR/GBP dropped from 0.7094 to 0.7046, reaching the low of 0.7014 intraday — the lowest level since November 2007.

If you have any questions, comments or opinions regarding the Great Britain Pound,
feel free to post them using the commentary form below.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *