Investing.com - The euro erased gains against the pound on Thursday, after better-than-expected U.K. industrial data and a lower-than-forecast trade deficit boosted sterling.
EUR/GBP pulled back from 0.8401, the pair’s highest since January 30, to hit 0.8381 during European morning trade, dipping 0.02%.
The pair was likely to find support at 0.8329, Wednesday’s low and resistance at 0.8405, the high of January 30.
The pound pushed higher after official data showed that manufacturing production in the U.K. rose significantly more-than-expected in December, increasing for the first time in three months, while industrial production also rose more-than-expected.
The Office for National Statistics said that manufacturing production rose by 1.0% in December, blowing past expectations for a modest 0.3% increase.
Industrial production rose 0.5% in December, above expectations for a 0.2% gain.
A separate report showed that the U.K.’s goods trade deficit narrowed more-than-expected in January, contracting to GBP7.1 billion, from an upwardly revised GBP8.9 billion the previous month.
The overall trade deficit including services narrowed to just GBP1.1 billion, the lowest since April 2003.
Meanwhile, the Bank of England was widely expected to implement a further GBP50 billion of quantitative easing at its policy setting meeting later in the day.
The pound was fractionally higher against the U.S. dollar, with GBP/USD easing up 0.08% to hit 1.5827.
Later in the day, the European Central Bank was to announce its benchmark interest rate, while the U.S. was to produce government data on initial jobless claims.
EUR/GBP pulled back from 0.8401, the pair’s highest since January 30, to hit 0.8381 during European morning trade, dipping 0.02%.
The pair was likely to find support at 0.8329, Wednesday’s low and resistance at 0.8405, the high of January 30.
The pound pushed higher after official data showed that manufacturing production in the U.K. rose significantly more-than-expected in December, increasing for the first time in three months, while industrial production also rose more-than-expected.
The Office for National Statistics said that manufacturing production rose by 1.0% in December, blowing past expectations for a modest 0.3% increase.
Industrial production rose 0.5% in December, above expectations for a 0.2% gain.
A separate report showed that the U.K.’s goods trade deficit narrowed more-than-expected in January, contracting to GBP7.1 billion, from an upwardly revised GBP8.9 billion the previous month.
The overall trade deficit including services narrowed to just GBP1.1 billion, the lowest since April 2003.
Meanwhile, the Bank of England was widely expected to implement a further GBP50 billion of quantitative easing at its policy setting meeting later in the day.
The pound was fractionally higher against the U.S. dollar, with GBP/USD easing up 0.08% to hit 1.5827.
Later in the day, the European Central Bank was to announce its benchmark interest rate, while the U.S. was to produce government data on initial jobless claims.