Results of the GBP news this morning were very disappointing as Manufacturing production and Industrial production both fell against analyst’s forecasts. Manufacturing output fell to -0.3% against a positive 0.5% forecast while Industrial production was negative 0.5% against forecasts. This sent the pound into session lows against all its major currencies.
The poor data could now indicate that the BoE will add to its asset purchase in February and increase the risk of further GDP tightening.
GBPUSD could remain correlated to the EURUSD which will help support the pound after Draghi’s comments yesterday ruling out cuts caught the market short and boosted both currencies into new monthly highs.
Key levels today for the Cable are support at 1.6105 and resistance at 1.6172.
DISCLOSURE & DISCLAIMER: The Above Is For Informational Purposes Only And Not To Be Construed As Specific Trading Advice. Responsibility For Trade Decisions Is Solely With The Reader.
by Turlough McIntyre