The Pound Sterling is now higher after an initial kneejerk reaction to the latest economic data which left some FX investors wondering about the Bank of England’s own reaction to the information. According to the UK’s Office of National Statistics, both manufacturing and industrial production declined in March, on a year-over-year as well as a month-over-month basis. Economists had been forecasting an overall rise in the numbers, especially on a year-to-year basis; however, without exception, the figures failed to hit the mark. Moreover, most of the previous data was revised downward.
As reported at 11:01 am (BST) in London, the GBP/USD was trading at $1.42, a gain of 0.14%; the pair earlier had touched a peak of $1.4223 while the session low is at $1.4173. The EUR/GBP is trading at 0.87221 Pence, a gain of 0.0507%; the pair has ranged from a low of 0.8700 Pence to a peak of 0.87250 Pence.
Traders Look to US CPI Data
Turning to the US, markets will be watching the release of inflation data with experts forecasting a rise in year-over-year core inflation data to 2.1% from 1.8%. Markets are also waiting for the release of the latest minutes of the Federal Reserve’s Federal Open Market Committee; the minutes will give traders a better gauge to assess the FOMC’s likely thought process as it ponders more rate hikes for later this year.