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

Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  6. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  7. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  8. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  9. Investing

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  10. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
Hot Definitions
  1. Short Selling

    Short selling is the sale of a security that is not owned by the seller, or that the seller has borrowed. Short selling is ...
  2. Harry Potter Stock Index

    A collection of stocks from companies related to the "Harry Potter" series franchise. Created by StockPickr, this index seeks ...
  3. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  4. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  5. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  6. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
Trading Center