GBPUSD is trying to start a new correction and move away from its four months lows, but unsuccessfully so far.
On Friday, the British Pound is still under pressure against the USD, although it is still trying to recover after yesterday’s decline. The current quote for the instrument is 1.3510.
Yesterday, the United Kingdom published a lot of statistics, but the Pound, which already was weak, fell even deeper. First of all, the Bank of England had another meeting and the results were no surprise: the BoE Interest Rate remained at 0.50% and the Asset Purchase Facility also didn’t change, £435B.
Investors were upset by the British regulator’s outlook of the country’s GDP. Expectations fell from 1.8% to 1.4%. It means that the BoE may not tighten its monetary policy the way it was expected to because of weakness of the economy or some of its sectors.
The Industrial Production in March added 0.1% m/m, the same as expected. At the same time, the Manufacturing Production lost 0.1% m/m after decreasing by 0.2% m/m in the previous month and against the expected reading of -0.2% m/m. The Construction Output report also plummeted, from -1.8% y/y to -4.9% y/y in February and March respectively.
In some way, the decline in the industrial production may be explained by the cold spring in the United Kingdom, that’s why one should wait for April and May numbers. However, right now there aren’t too many positive factors on the market, which may help the Pound to recover.
Orgin: RoboForex
