Today is not the best day for the Pound. Overview for 07.04.2017

The GBP/USD pair is falling on Friday after the UK published several weak statistical reports, although the USD doesn’t seem to be strong.

The British Pound might strengthen “a contrario” on Friday, as the world is looking at the USD very cautiously today. However, the British Pound didn’t stand any chance of growing due to statistical reports published by the United Kingdom. The current quote for the instrument is 1.2415.

The statistics published today showed that the Industrial Production in the UK in February decreased by 0.7% m/m after losing 0.3% m/m the month before and against expectation of adding 0.2% m/m. The Manufacturing Production in the same month lost 0.1% m/m, thus continuing the January trend (-1.0% m/m). The Construction Output lost 1.7% m/m after remaining unchanged in January and against expectations of adding 0.1% m/m.

On the one hand, the decrease of the first two indicators was influenced by a seasonal factor. However, the most contribution was made by the private sector, which was very cautious and couldn’t estimate the demand for its output in advance after London start the Brexit procedure.

On the other hand, the Industrial production may recover as fast as it declined, everything depends on the final demand and consumers’ financial solvency.

The Halifax House Price Index in March remained unchanged in comparison with the previous month, although it was predicted to add 0.2% m/m. This is also a clear signal that the Brits are holding off.

RoboForex Analytical Department