GBP/USD Plunges To Fresh Session Low After UK Industrial Output Slows

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

Talking Point:

  • UK Industrial Production: (MoM) -0.7% Actual Vs 0.3% Estimated; 0.4% Prior.
  • UK Industrial Production (YoY) 2.3% Actual Vs 3.2% Estimated; 3.0% Prior.
  • GBP/USD Hits Session Low as it Falls 50 pips and Breaks below 1.7100.

Want to trade with proprietary strategies developed by FXCM? Find out how here.

UK Industrial Production, which measures the output of the mining, quarrying and manufacturing industries, registereda 2.3 percent increase year-on-year in May. The short-term gauge of strength in industrial activity decelerated from the prior month’s reading of 2.9 percent and fell short of market expectations of 3.2 percent. Similarly, the month-on-month reading fell sharply from the prior month’s reading of 0.3 percent as it crossed the wires at negative 0.7 percent. This was a significant miss from economists’ expectations for a 0.3 percent increase in a marked degree.

Following the release of the UK Industrial Production figures, GBP/USD plunged to a fresh session low to trade below the psychologically significant 1.7100 level. The Pound lost over 50 pips against the US Dollar to trade at 1.7086. This extensive reaction may have been due to a downward surprise in the UK economic data as the general consensus was for a firm outcome, amid traders speculating about a looming Bank of England (BOE) interest rate hike says DailyFX Currency Strategist Ilya Spivak

DailyFX Currency Analyst David de Ferranti discusses in his Forex Candlestick Summary of nearby noteworthy support at 1.7100 with resistance at 1.7170.

GBP/USD 5 Minute Chart

GBP/USD Plunges To Fresh Session Low After UK Industrial Output Slows

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

DailyFXprovides forex news and technical analysis on the trends that influence the global currency markets.Learn forex trading with a free practice account and trading charts fromFXCM.

New to FX? START HERE!

Edward Hyon, DailyFX Research Team

Keep up to date on event risk with DailyFX Calendar

comments powered by Disqus
Related Forex Analysis
  1. USD/JPY challenges tops near 109.40
    Forex News

    USD/JPY challenges tops near 109.40

  2. EUR/USD extends gains to 1.2640
    Forex News

    EUR/USD extends gains to 1.2640

  3. USDOLLAR Faces a Huge Test at Range Highs
    Forex News

    USDOLLAR Faces a Huge Test at Range Highs

  4. Crude Weak Bounces Portend Lower Levels
    Forex News

    Crude Weak Bounces Portend Lower Levels

  5. Gold Wave 5 Low Coming
    Forex News

    Gold Wave 5 Low Coming

Trading Center