Although the sun may have been shining yesterday in London city the UK’s Month on Month manufacturing and Goods trade balance provided no such optimism.
Manufacturing data had been expecting to register a flat 0.0% however it was much worse and found its way safely into negative territory at – 0.3%. Many had anticipated a decline but the extent of the fall was particularly disappointing.
Things were compounded only a few minutes later with the release of the goods trade balance which highlighted that the UK Trade deficit had widened to £12.409 BN, £2.409 BN more than projected; also worth noting is that the £10BN was revised down in May and was initially set at £9.88BN.
Figures, as mentioned, were for June and therefore pre EU-referendum indicating a slowdown before BREXIT. Next for sterling came the monthly industrial production figures; forecasted to be a –0.1%, it exceeded expectations and registered 0.1%; although it didn’t save the GBP.
GBP/USD sat comfortably under the 1.30 mark on Tuesday whilst GBP/€ declined sharply after the release and closed at a shade over 1.17, however, overnight it lost further ground.
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