News Column

Pound Rises After Higher Than Expected UK Industrial Production Data

June 10, 2014

BRUSSELS (Alliance News) - The pound strengthened against the other major currencies in the early European session following the release of a data showing that nation's industrial production expanded at a faster pace in April.

Industrial output gained 0.4% in April from March, when it grew by revised 0.1%. The rate matched economists' expectations. The increase in total production reflected increase of 0.4% in manufacturing, the fifth consecutive increase since November 2013. Manufacturing output growth also came in line with expectations.

On a yearly basis, industrial production grew 3% versus 2.5% in March. This was the eighth consecutive increase since August 2013. At the same time, manufacturing output advanced 4.4%. Economists had forecast industrial output to rise 2.8% and manufacturing to grow 4%.

The pound rose to 5-day highs of 1.5117 against the Swiss franc and 0.8063 against the euro, from early lows of 1.5062 and 0.8093, respectively.

Against the Yen and the US dollar, the pound rose to 172.05 and 1.6810 from early multi-day lows of 171.63 and 1.6779, respectively.

If the pound extends its gain, it is likely to find resistance around 0.79 against the euro, 1.52 against the franc, 173.21 against the yen and 169.00 against the greenback.

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Source: Alliance News

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