Sterling Slumps Following Soft Industrial Production Report

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The GBP/USD continued to slide on Friday following a softer than expected IP report and Thursday’s dovish Bank of England monetary policy meeting. Ahead of Friday’s U.S. payroll report the currency pair is lower headed toward support levels.

The UK September industrial production data disappointed, dropping 0.2% month over month after growing by 0.9% month over month in August from a revised from 1.0% and below the median for a -0.1% month over month outcome. The year over year rate was +1.1%, which was shy of the median forecast for 1.3% growth. A decline in mining and quarrying compressed the overall data, while manufacturing, which is the biggest component of total production, rose by 0.8% month over month, above the median for 0.6% month over month, and fell by a less-than-anticipated 0.6% year over year as the median had been for -0.7% year over year.

The BoE in its updated inflation reported noted that world growth has been weaker in the second quarter of the year, than expected at the time of the last inflation report in August. The currency pair is poised to test horizontal trend line support at 1.5105. Resistance is seen at the 10-day moving average at 1.5325.

The post Sterling Slumps Following Soft Industrial Production Report appeared first on Forex Circles.

Source:: Sterling Slumps Following Soft Industrial Production Report

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