Forex: GBP/USD: UK trade balance deficit disappoints at £9.7 billion; Manufacturing Production growth at 2½ year high

on Dec 10, 2013
Updated: Oct 21, 2019
Listen Tuesday, December 10th:_ The GBP/USD yesterday scored a 0.95 percent gain, with the daily candle closing at 1.6421 and making for the largest single-day rise since 13 November. The pair initially fell to a low of 1.6321 but recovered to a high at 1.6428 to test the 2 and 3 December tops.

The uptick was supported by Bank of England governor Mark Carney saying at the Economic Club of New York that the economic news in the United Kingdom “has been positive” and that the pace of recovery was such that self-sustaining momentum could be reached. He stressed though that the BoE’s monetary policy would remain accommodative for some time, to boost growth and repair the country’s troubled banking sector.

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Today the GBP/USD initially rose to establish an ongoing intraday peak at 1.6464 – the highest point since 24 August 2011 – but subsequently the price retraced to a low at 1.6419. A degree of recovery since then has the quote right now trading at 1.6434.

The RICS House Price Survey came out earlier today, showing that members reporting an increase in prices rose to 58.0 percent in November, lower than market expectations for a rise to 59 but up on the prior period’s 57.

UK industrial production rose in October, by 0.4 percent compared to September and contributing to growth of 0.4 percent in the overall index of manufacturing production. On an annualised basis, manufacturing production expanded by 2.7 percent compared to October 2012, making for the strongest rate of expansion since May 2011.
The UK’s trade balance hasn’t fared so well. Although the deficit narrowed to £9.732 billion in October, it was bigger than analyst expectations for £9.3 billion. In addition, September’s trade deficit was revised up to £10.1 billion, approaching the record £10.3 billion from April 2012.

In the United States today, the National Federation of Independent Business Small Business Index for November is due out at 12.30 UTC and is expected to grow to 92.7 points from 91.6.
Following at 15.00 UTC will be October’s JOLTS Job Openings and Wholesale Inventories m/m.
Resistances today: 1.6460, 1.6500 and 1.6565.
Supports: 1.6424, 1.6385 and 1.6350.
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