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Upbeat UK data this morning

• Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
• January 10, 2018
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This morning we had the UK manufacturing and industrial production data released and both beat estimates.

The GBP/USD pair maintained its offered tone for the second consecutive session, albeit managed to bounce off few pips from lows after mixed UK releases.

The pair managed to recover around 15-20 pips from the 1.3500 neighbourhood and was being supported by the UK data that showed manufacturing production growth stood at 0.4% for November, better-than 0.1% recorded in the previous month and 0.3% expected.

Meanwhile, the overall industrial output also bettered expectations and posted m-o-m growth of 0.4%, with the yearly growth at 3.5% as against 2.8% expected.

The positive manufacturing data, to some extent, was negated by the UK goods trade balance data, which came in to show a larger-than-expected deficit of £12.23 billion for November (£10.70 billion expected) and did little to improve the already weaker sentiment, led by the UK political headwinds, surrounding the British Pound.

It’s a quiet day for the EUR today, with no data scheduled for release out of the Eurozone.

The markets will be looking ahead to the ECB monetary policy meeting minutes that are scheduled for release tomorrow, though for now, it’s all for the Dollar to lose.