On Friday, the GBP/USD pair settled down a bit, although the British statistics published earlier was disappointing.
On Friday afternoon, the British Pound stopped weakening as fast as it did recently. However, it is barely connected to new trading ideas of the Pound itself, because the UK statistics was quote weak. Probably, the market hit the “bottom” of the instrument, and there it would stay until stronger drivers appear. The current quote for the instrument is 1.4068. The pair fell by almost 4% over three months.
According to the statistics published today, the industrial production in the UK in February decreased by 0.3% m/m against the increase in January of 0.2% m/m. On a year-on-year basis, the same production in February decreased by 0.5%, and this decline rate is the fastest over three years.
The components of the report says that volumes of the manufacturing sector are falling. In February, commodity output decreased by 1.1% m/m against the increase of 0.5% the month before. This sector is the one, which made the deepest impact on the numbers of the industrial production.
It looks like the industrial production sector just “matched” its capacity to the country’s needs and small demand abroad. The British people don’t increase their routine purchases, housewives are rather careful. Everyone bears in mind the referendum concerning the country’s membership in the European Union, planned for the summer. For the industrial sector, this major landmark is as important as for all other areas: the country’s economic well-being for the long run is at stake.
RoboForex Analytical Department
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