The Pound is trading in the range. Overview for 11.05.2017

11 мая 2017 - Fx4News

The GBP/USD pair is trading inside its mid-term trading range; to update October’s highs, the pair needs a reason.

The British Pound is retreating a little bit against the USD on Thursday. The current quote for the instrument is 1.2914.

Today, the Bank of England is going to have another meeting, which will probably be over in the same way as the previous one – neutrally. So far, there are no reasons for revising the interest rate, which right now is 0.25%. However, one should pay attention to the BoE’s comments. In the afternoon, the regulator will publish its Inflation Report, which might as well provide the financial market with new drivers for movements.

Today’s statistics turned out to be rather weak, just as expected. The Industrial Production in the United Kingdom decreased by 0.5% m/m (+1.4% y/y) after losing 0.8% m/m the month before and against the expected reading of -0.4% m/m. The Construction Output lost 0.7% m/m in March against the expected number of +0.3% m/m. In the previous month, the indicator decreased by 1.3% m/m. The Manufacturing Production fell as well.

So, what is happening to the British Industrial Production? Nothing serious, really. Based on the inflation growth, retail and wholesale price rose significantly, thus influencing both average Brits and companies. Everything got more expensive immediately, took a heavy toll on the demand, and, as a result, forced manufacturers to decrease the output.

Indicators will recover when the inflation reaches its highest level. It will be also when the decline of macroeconomic indicators will no longer worry the British Pound as well.

 

RoboForex Analytical Department