GBP/EUR Slips Below 1.13, GBP/AUD Above 1.72, after Mixed Bag of Economic Data10 January 2018 by News Desk
The pound to euro (GBP/EUR) and pound to Australian dollar (GBP/AUD) exchange rates have slipped on Wednesday morning after a mixed bag of UK economic data, say industry experts FC Exchange.
It’s a big day for the UK concerning economic data with a host of influential ecostats flooding the market this morning. However, the raft of data has given a mixed bag of results; UK industrial production has fallen on the year from 4.3% to 2.5% in November (better than the 1.8% forecast), and the seasonally adjusted construction output number also remained above expectations of -1.0%, and resided at 0.4% in November, falling from the previous month’s more positive 1.3%. However, the monthly construction figure fell below expectations at only 0.4% rather than the 0.7% analysts had initially thought. The manufacturing sector also surprised to the upside, with the annual figure dropping to 3.5% from 4.7%, but beating the 2.8% expectation.
A senior statistician at the Office for National Statistics (ONS) Ole Black commented: ‘There was strong and widespread growth across manufacturing with notable increases from renewable energy projects, boats, planes, and cars for export. However, despite a small uptick in November, construction again contracted in the last three months, with private house building providing the only positive news in the sector.’
Sterling has fallen against the euro in the wake of the data and after initially remaining above the 1.13 barrier, slipped lower to 1.12 in the late morning. Additionally, the British pound has slipped against the Australian dollar but remains firmly above the 1.72 threshold.
Markets are also digesting a torrent of news on how major UK retail institutions have performed in the last year with some noting an increase in sales and others issuing profit warnings and threats of shop closures. The UK has fallen lower in growth tables in comparison to other Group of Seven (G7) economies, and David Davis and Philip Hammond are currently in Germany to try and convince businesses to help them in their endeavours to secure a positive Brexit deal.
The pound to euro (GBP/EUR) exchange rate resides at interbank levels of 1.1294. the pound to Australian dollar (GBP/AUD) exchange rate is hovering at 1.7230.
Disclaimer: This economic update is provided by FC Exchange a Global Reach Group Company, industry leaders in foreign exchange. Authorised affiliates are permitted to reuse content.
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