Manufacturing output in the UK dropped by 1.5%, contrary to expectations of no change. Also the wider industrial production figure disappointed with a drop of 1.2% contrary to a rise of 1.1% that was expected.
GBP/USD is now at 1.4866 – new multi year lows. The pair dipped uner the 1.49 level already on Friday, after the Non-Farm Payrolls, but recovered for some time.
It was flirting with the line before the publication, and is now digging deeper. Where will it stop? 1.48 provides some support, and the next big line is only 1.4610.
Update: the pair now extends the drop and reaches 1.4840.
For levels, events and analysis, see the weekly British pound forecast.
The UK also published trade balance figures: the deficit squeezed from 8.7 billion to 8.2 this time, slightly better than 8.8 that was predicted.
