Pound Rises On Upbeat U.K. Factory Data
11 Oktober 2024 - 8:29AM
RTTF2
The British pound weakened against other major currencies in the
European session on Friday, after the release of upbeat U.K.
monthly factory data and an expected GDP growth in August.
Data from the Office for National Statistics showed that the
U.K. industrial output rebounded 0.5 percent, following a revised
fall of 0.7 percent in the previous month and also came in better
than forecast of 0.2 percent increase.
The growth was underpinned by the 1.1 percent increase in
manufacturing output. Output was forecast to grow 0.3 percent after
July's 1.2 percent decrease.
Moreover, construction output climbed 0.4 percent, offsetting
the 0.4 percent fall in July.
Data showed that the annual fall in industrial production slowed
to 1.6 percent from 2.2 percent and the decline in manufacturing
eased to 0.3 percent from 2.0 percent.
The visible trade deficit narrowed to GBP 15.06 billion from GBP
18.87 billion in the previous month. At the same time, the surplus
on trade in services decreased to GBP 14.1 billion from GBP 14.2
billion a month ago.
At the same time, data showed the U.K. economy returned to
growth in August, but the pace of expansion was weaker than in the
first half of the year.
The real economy grew 0.2 percent in August after showing nil
growth in July and June, the Office for National Statistics said.
The rate came in line with expectations.
In the three months to August, real GDP advanced 0.2 percent
compared to the three months to May and gained 0.8 percent from the
same period last year.
U.K. Chancellor Rachel Reeves said it is welcome news that
growth has returned to the economy.
The Bank of England (BoE) has two policy meetings left this
year, and traders anticipate that at least one of them will see an
interest rate reduction.
In the European trading today, the pound rose to 1.3082 against
the U.S. dollar and 0.8369 against the euro, from early lows of
1.3041 and 0.8385, respectively. The pound may test resistance near
1.33 against the greenback and 0.82 against the euro.
Against the Swiss franc and the yen, the pound edged up to
1.1206 and 194.58 from early lows of 1.1181 and 193.87,
respectively. If the pound extends its downtrend, it is likely to
find support around 1.13 against the franc and 197.00 against the
yen.
Looking ahead, Canada jobs data for September, U.S. PPI for
September, U.S. University of Michigan's consumer sentiment for
October, U.S. WASDE report and U.S. weekly Baker Hughes oil rig
count data are slated for release in the New York session.
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