Trading Forex and CFDs is risky
Read HotForex Daily Market Analysis

UK Production Beats but Trade Balance Hurts

Market Analysis

GBPUSD, Daily             

UK production figures for November beat expectations, with the headline industrial output reading rising 2.1% m/m and 2.0% y/y, up from -1.1% m/m and -0.9% y/y in revised data for October and the first positive readings in three months. The median forecasts had been for growth of just 0.6% m/m and 0.3% y/y. The reopening of the Buzzard oil field in the North Sea following a down period for maintenance boosted the industrial figure, though the narrower manufacturing production gauge (which excludes mining and quarrying, forestry and agriculture) also smashed forecasts. Manufacturing output came in with growth of 1.3% m/m and 1.2% y/y, up from -1.0% m/m and -0.5% y/y in October. The median forecasts were again well off the actual outcomes. The encouraging production data were offset by an unexpected construction output and November trade data showing a GBP 3.3 bln leap in imports, which dwarfed a GPB 700 mln rise in exports, leaving the trade deficit at a much wider than forecast GBP 4.2 bln. The trade data evidences that the weaker pound won’t be a one-way street. The pound tipped about 50 pips lower versus the dollar after an initial pop in the immediate wake of the data releases. Cable spiked to the low seen earlier in the week at 1.2106, (a May 1985 low), my short term target remains sub 1.2100 at 1.2080.  Sterling continues to be the weakest of the majors this morning, with NZD being the strongest performer.

 

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.

Click HERE to register the next webinar will start in:

Stuart Cowell

Market Analyst

HotForex

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.