The Pound is back to “bears”. Overview for 11.05.2016
11.05.2016
On Wednesday afternoon, the GBP/USD pair is falling; the published statistics haven’t made investors more optimistic.
In the middle of the week, the British Pound is under pressure again. So far, buyers are not too active in the GBP/USD pair, but investors may gain pace. The current quote for the instrument is 1.4421.
Very interesting statistics on the UK was published today. The industrial production in the country in March decreased by 0.2% y/y against the expected number of 0.4% y/y. And if these numbers are quite positive, then the situation on a month-on-month basis is not so optimistic. The same sector in March increased only by 0.3% m/m against the predicted number of 0.5% m/m. The processing industry looks quite weak, and it usually produces the vast majority of everyday goods and food products. In March, the processing industry increased only by 0.1% m/m (-1.9% y/y) against the predicted number of 0.5% m/m.
This statistics doesn’t allow the British Pound to rebound from the previous trading day.
Most likely, decline of activity in the processing industry was caused by a low consumer demand – Englishmen never started to spend money extensively, they would rather spare money and wait until the economy stabilizes. However, the economy of the UK seems quite positive, economic growth can be seen, the employment market is in balance. The only thing that lacks is consumer optimism.
RoboForex Analytical Department
In the middle of the week, the British Pound is under pressure again. So far, buyers are not too active in the GBP/USD pair, but investors may gain pace. The current quote for the instrument is 1.4421.
Very interesting statistics on the UK was published today. The industrial production in the country in March decreased by 0.2% y/y against the expected number of 0.4% y/y. And if these numbers are quite positive, then the situation on a month-on-month basis is not so optimistic. The same sector in March increased only by 0.3% m/m against the predicted number of 0.5% m/m. The processing industry looks quite weak, and it usually produces the vast majority of everyday goods and food products. In March, the processing industry increased only by 0.1% m/m (-1.9% y/y) against the predicted number of 0.5% m/m.
This statistics doesn’t allow the British Pound to rebound from the previous trading day.
Most likely, decline of activity in the processing industry was caused by a low consumer demand – Englishmen never started to spend money extensively, they would rather spare money and wait until the economy stabilizes. However, the economy of the UK seems quite positive, economic growth can be seen, the employment market is in balance. The only thing that lacks is consumer optimism.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.