Pound Slides On Disappointing U.K Industrial Output

May 11, 2016 Share Print 0

The pound weakened for the first time in three days versus the euro as a report showed U.K. industrial production grew less in March than analysts forecast, adding to signs that Britain’s economy is suffering as it heads toward a referendum on its membership of the European Union.

Sterling fell against most of its 16 major peers Wednesday as figures from the Office for National Statistics showed output rose 0.3 percent, less than the 0.5 percent gain predicted in a Bloomberg survey of economists. Factories increased production by 0.1 percent, also less than forecast.

Even after a rebound in the past month, the pound is still the worst performer this year among currencies of Group-of-10 nations, weighed down by weak economic data and concern that the U.K.’s possible exit from the trading bloc will further derail investment. Reports last week showed manufacturing, construction and services industries all trailed economists’ predictions.

The pound weakened 0.3 percent to 78.99 pence per euro as of 9:55 a.m. in London, after strengthening 0.4 percent in the previous two days. Sterling fell 0.2 percent to $1.4418.

Bloomberg

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Dean Popplewell

Vice-President of Market Analysis at MarketPulse

Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.