The Pound is falling under the influence of the statistics. Overview for 07.12.2016
07.12.2016
The GBP/USD pair is getting cheaper on Wednesday afternoon after they publish some disappointing statistics on the Industrial Production.
On Wednesday, the British Pound got under pressure after the Industrial Production reports for October were published. The current quote for the instrument is 1.2630.
The report released this morning indicated that the Industrial Production in the UK in October lost 1.3% m/m instead of adding 0.2% n/n as it was expected. On YoY, the indicator decreased by 1.1% instead of improving by 0.5%.
These numbers seemed too weak for the markets, although, one should admit that among other statistical reports, which were rather positive overall, the signs of drops in orders and long-term investments could be seen earlier as well. Decline in manufacturing in October is barely connected to the seasonal factor because it’s not there. But the decline can be easily caused by the decisions relating to the Brexit to be taken by the United Kingdom in the future.
However, it’s needless to say that there isn’t any panic among business entities or factories. Decrease in orders and the corresponding decline in the industrial production may turn out to be a “one-time” negative response. There are no reasons for decreasing the production in advance until the country’s authorities tell about the mechanisms of exiting the European Union.
RoboForex Analytical Department
On Wednesday, the British Pound got under pressure after the Industrial Production reports for October were published. The current quote for the instrument is 1.2630.
The report released this morning indicated that the Industrial Production in the UK in October lost 1.3% m/m instead of adding 0.2% n/n as it was expected. On YoY, the indicator decreased by 1.1% instead of improving by 0.5%.
These numbers seemed too weak for the markets, although, one should admit that among other statistical reports, which were rather positive overall, the signs of drops in orders and long-term investments could be seen earlier as well. Decline in manufacturing in October is barely connected to the seasonal factor because it’s not there. But the decline can be easily caused by the decisions relating to the Brexit to be taken by the United Kingdom in the future.
However, it’s needless to say that there isn’t any panic among business entities or factories. Decrease in orders and the corresponding decline in the industrial production may turn out to be a “one-time” negative response. There are no reasons for decreasing the production in advance until the country’s authorities tell about the mechanisms of exiting the European Union.
RoboForex Analytical Department
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.