U.K. data

• GDP (m/m), fact -0.4%, forecast -0.1%.
• Industrial production (m/m) (Apr), fact -2.7%.,  forecast -0.7%.
• The volume of production in the manufacturing industry (m/m) (April), fact -3.9%, forecast -1.1%.
• Trade balance (Apr), fact -12.11B, forecast -13.10B.
• Trade balance excluding EU countries (April), fact -4,60B, forecast -4,48B.

The data on GDP, manufacturing production and the UK trade balance continued to slow down. Particular concerns were caused by data on the volume of production in the UK manufacturing industry, which fell close to the 2002 lows, heightening concerns about a slowdown in the British economy.

Fig. 1. Production in the UK Manufacturing Industry

Amid political risks and uncertainty on Brexit, weak UK data increased pressure on the British pound, effectively resuming the downward trend in the British. The GBP/USD pair accelerated the corrective decline, limited to attempts of growth and support levels: 1.2650 and 1.2620. Resistance: 1.2730 and 1.2750.

Fig. 2.  GBP/USD. Current price – 1.2690

Read also: “Trade balance influence on the country’s economy”

Hanzenko Anton

Earn with the help of the trade service on the news Erste News!

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