DailyFX.com -

Talking Points:

  • Industrial Production and Manufacturing Production Reported Better-than-Expected
  • British Rises Against the US Dollar After Data Crossed the Wires
  • GBP/USD Technical Analysis – Short Trade Setup Sought

UK Industrial Production accelerated to 3.0 percent in April, the highest level in three years and beating estimates calling for a print of 2.8 percent. The March figure was revised higher to 2.5 percent, from 2.3 percent. UK Manufacturing Production reported on a positive note, as well, with the year-on-year rate rising to 4.4 percent, beating estimates calling for a print of 4 percent.

The data does not have a direct impact on monetary policy, so the reaction may have limited follow-through. The Bank of England has maintained its policy stance, by not looking to raise rates until slack in the economy is absorbed. In recent policy comments, the BOE maintains that the perceived risk to the UK is economic downturn, noting geopolitical risk, and hosing as other sources of main risk to the economy.

GBP/USD rose on the release. DailyFX Strategist Ilya Spivak maintains a bearish outlook, and looks for an opportunity to short GBP/USD.

UK Industrial Output Sees Strongest Annual Gain since 2011, GBP/USD Rises

GBP/USD 5-Minute Chart. June 10, 2014. Charted created using FXCM Marketscope 2.0.

-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to dmaycotte@FXCM.com.

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

Related Articles
  1. 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​
  2. 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.
  3. 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.
  4. 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 ...
  5. Forex

    Top U.S Forex News Sites

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

    Financial News Comparison: Bloomberg Vs. Reuters

    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.
  7. 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.
  8. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  9. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  10. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!