Industrial output is up while the trade deficit widens. The pound prefers to see the glass half full with GBP/USD heading towards 1.32.
UK manufacturing output is up 0.4% m/m and 2.8% y/y, better than projected. The wider industrial production is up 0.2% as expected but 1.6% y/y, beating expectations.
On the other hand, the trade deficit has widened to no less than 14.245 billion, significantly worse than 11.2 billion predicted. In addition, the figure for last month was revised to the downside.
The United Kingdom released a big bulk of figures. Most notably, manufacturing output was expected to rise by 0.2% after 0.5% last time. The trade balance deficit was predicted to squeeze from 11.6 to 11.2 billion. The wider industrial output was expected to rise by 0.2%.
GBP/USD maintained the recovery it enjoyed yesterday. Sterling moved higher thanks to an upwards revision in labor unit costs. In addition, some profit-taking on the pound’s previous falls and some political calm helped.
PM Theresa May appeared in Parliament yesterday and seemed to have control over her party and her government.
More: GBP: Likely To Recover Into 1.3250-1.3300 – ING
