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12 Mar 2013
Forex: EUR/GBP rallies above 0.8750 on UK industrial production
The EUR/GBP has been finding resistance at the 0.8750 area and the London opening allowed a pullback to 0.8720 zone ahead of the load of UK data. Numbers came in mixed with good trade data in concerning industrial/manufacturing figures, but investors show clear worries and the GBP is at a selloff now. The EUR/GBP rallies above 0.8750, already at 0.8778 high.
UK Goods Trade deficit narrowed from £-8.738B in January (revised from £-8.897B) to £-8.195B, beating consensus of £-9.000B. Non EU-trade data was also well received, at £-3.28B, from £-4.169B (consensus of £-4.50B).
UK industrial production fell -1.2% (consensus of +0.1%) and manufacturing production dropped -1.5% (consensus of 0.0%) in January. Annualized data contracted further from -2.1% to -2.9% (consensus of -1.1%) and from -1.6% to -3.0% (consensus of -1.1%), respectively.
“Provided dips lower are contained by 0.8687/70, we will assume an overall upside bias for now”, wrote Commerzbank analyst Karen Jones, pointing to interim resistance at 0.8764, the 20th of February high.
UK Goods Trade deficit narrowed from £-8.738B in January (revised from £-8.897B) to £-8.195B, beating consensus of £-9.000B. Non EU-trade data was also well received, at £-3.28B, from £-4.169B (consensus of £-4.50B).
UK industrial production fell -1.2% (consensus of +0.1%) and manufacturing production dropped -1.5% (consensus of 0.0%) in January. Annualized data contracted further from -2.1% to -2.9% (consensus of -1.1%) and from -1.6% to -3.0% (consensus of -1.1%), respectively.
“Provided dips lower are contained by 0.8687/70, we will assume an overall upside bias for now”, wrote Commerzbank analyst Karen Jones, pointing to interim resistance at 0.8764, the 20th of February high.