News Column

Pound Slides As UK Industrial Production Rises Below Forecasts

August 6, 2014

BRUSSELS (Alliance News) - The British currency weakened against its key counterparts in the early European session on Wednesday after data showed that the UK industrial production rose less-than-expected in June.

Data from the Office for National Statistics showed that British industrial production grew less than expected in June as oil and gas extraction declined from May.

Month-on-month, industrial and manufacturing output grew 0.3% each in June, the Office for National Statistics said. Economists had forecast both industrial production and manufacturing output to rise 0.3%.

The increase in June reversed a 0.6% fall in May industrial output. Manufacturing output was down 1.3% in May.

On a yearly basis, industrial production grew 1.2% in June, slower than the 1.5% rise forecast by economists. At the same time, manufacturing output advanced 1.9%, which was also weaker than the expected increase of 2.1%.

The pound fell to 2-day lows of 1.6826 against the US dollar and 172.48 against the yen, from early highs of 1.6885 and 172.26, respectively.

Against the Swiss franc, the pound slipped to 1.5293 from an early high of 1.5358. The pair was quoted at 1.5347 at yesterday's close.

Pulling away from an early multi-day high of 0.7915 against the euro, the pound fell to 0.7944.

If the pound extends its downtrend, it is likely to find support around 0.798 against the euro, 1.67 against the greenback, 1.52 against the franc and 172.25 against the yen.

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Source: Alliance News

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