Manufacturing production in the UK rose by 0.8%. It was expected to rise by 0.4% after falling 1.5% last month (before revisions). The wider industrial production figure also surprised to the upside rising 1%, while it was expected to rise by 0.4% as well. Britain’s trade balance deficit was predicted to widen from 8.2 billion (before revisions) to 8.7 billion. However, it rose to 9.4 billion. This dampens the good news coming from manufacturing production. All the figures are for the month of February.
GBP/USD trading around 1.5270 before the publication, rising to 1.5280 just before the release and jumping above 1.53 on the news. A small gap can be seen on the 30 minute chart.
Live chart of GBP/USD:
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Last week, manufacturing PMI remained in contraction territory according to Markit, with a lower than expected score.
For more on the pound, see the GBP/USD forecast.
