UK manufacturing and trade balance data misses: manufacturing is down 0.8% m/m and 0.5% y/y. Gains were expected. The wider industrial output numbers fall 0.4% m/m and ris only 0.8% y/y. The trade balance deficit widened to 11.082 billion, much worse than expected. At least the previous figure was slightly revised to the upside: 8.5 billion. All in all, the data is quite disappointing.
GBP/USD falls to 1.5370. The pair extends its slide to lower levels.
The UK was expected to report a m/m gain of 0.2% in manufacturing production for July and 0.5% year over year, in line with June’s data. Industrial output carried expectations for a rise of 0.1% m/m and 1.4% y/y. The trade balance deficit carried expectations of widening to 9.5 billion pounds.
Towards the publication, GBP/USD maintained the highs it climbed to and flirted with 1.54.
Cable was falling for nearly two weeks, day after day. The new week and calmer markets allowed sterling to recover nicely.
More: GBPUSD Bounces High for Correction – Elliott Wave Analysis
