GBP/USD currency pair is trading lower on the back of industrial production statistics. The Great Britain Pound is under selling pressure now – for the first time in a week of stability and dull growth. Currently, the pair holds at 1.3372.
According to the statistical data released today, industrial production in Great Britain fell 0.9% m/m in July and this is the worst value for this indicator this year. In general, industrial production showed a growth of 0.1% thanks to sharp rise of energy production.
Market rumors have already stated Brexit as the reason for such situation - June was the first full month when both investors and business knew the results of the British referendum. Appearingly, they began to prepare themselves for possible “external shocks". However, they feared before time: even up to now we don't know when and how exactly Great Britain will be exiting EU, how EU will keep (if it will eventually) access to the common market and what commercial and economic relations between EU and Great Britain will be. Until we know these aspects there is no point in detailed discussing of this situation.
As for now, the British economy looks good enough and can grow up on 1.5-1.6% at year-end. The special measures BoE announced in August may contribute to the GDP growth too. Speaking about the Pound itself, it is very sensible to any negative news for the time being.
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