UK Industrial production preview: What to expect in GBP/USD?

By FXStreet FXStreet (Mumbai) – The GBP/USD pair is pressured through 1.52 handle and maintains the offered tone from the previous session, following the surprisingly dovish comments from BOE Governor Mark Carney and the disappointing quarterly inflation report. More so, higher bids for the US dollar in wake of increased Dec Fed rate hike bets before the US labour market report, also keeps the cable undermined.

For the GBP traders, the economic news now in focus is the UK industrial and manufacturing output numbers lined up for release at 09.30GMT.

Fall in manufacturing output to drag the overall industrial production lower

The manufacturing output, the main component of the total industrial output, is expected to reverse August’s 0.5% rebound and tick slightly lower to 0.4% in September. While the total industrial production, which includes extraction of oil and gas from the North Sea, is seen declining 0.1% on a m/m, after increasing 0.1% in August.

The small signs of revival seen in August appear to fade at the end of the third quarter as softer external demand and sterling appreciation weigh on the UK’s industrial sector.

Earlier this week, manufacturing sector activity in the UK grew at the fastest pace in sixteen months, …read more

Source:: FX Street