FOREX TradingCharts.com

Forex News: Pound Slides As U.K. Economy Shrinks For Second

Pound Slides As U.K. Economy Shrinks For Second Month

06/10/2019 - 05:53:00 (RTTNews)

(RTTNews) - The pound depreciated against its major counterparts in early European deals on Monday, as UK economy contracted for the second straight month in April on weak manufacturing amid uncertainty about the Brexit crisis.

Data from the Office for National Statistics showed that GDP fell 0.4 percent on a monthly basis after easing 0.1 percent in March. GDP was forecast to drop again by 0.1 percent.

In three months to April, GDP expanded at a slower pace of 0.3 percent after climbing 0.5 percent in the first quarter.

In April, industrial production declined for the first time this year on sharp fall in manufacturing. Production decreased 2.7 percent month-on-month, reversing a 0.7 percent rise in March and bigger than the expected 1 percent drop.

Manufacturing output contracted 3.9 percent on month, in contrast to a 0.9 percent rise in March. This was the biggest fall since June 2002 and larger than the forecast of 1.4 percent decrease.

On a yearly basis, industrial production fell 1 percent after expanding 1.3 percent a month ago. Likewise, manufacturing slid 0.8 percent following a 2.6 percent rise in previous month.

Economists had forecast industrial output to grow 0.9 percent and manufacturing to climb 2 percent.

Another report from ONS showed that the visible trade deficit narrowed to a six-month low in April. The trade gap fell to GBP 12.1 billion in April from GBP 15.4 billion in March.

At the same time, the trade in services showed a surplus of GBP 9.37 billion. Consequently, total trade deficit narrowed to GBP 2.74 billion from GBP 6.15 billion a month ago.

The currency traded mixed against its major counterparts in the Asian session. While it held steady against the franc and the euro, it fell against the yen and the greenback.

The pound weakened to near a 5-month low of 0.8906 against the euro, after rising to 0.8880 at 4:00 am ET. The pound may test support around the 0.90 level, if it drops again.

The U.K. currency depreciated to a 4-day low of 1.2685 against the greenback, from a high of 1.2735 seen at 6:00 pm ET. The currency is seen finding support around the 1.24 region.

After rising to near a 2-week high of 138.25 against the yen at 4:00 am ET, the pound reversed direction with the pair trading at 137.79. The currency is likely to target support around the 136.00 area.

Data from the Cabinet Office showed that Japan's gross domestic product gained a seasonally adjusted 0.6 percent on quarter in the first three months of 2019.

That's an upward revision from 0.5 percent in last month's preliminary reading, and it was in line with expectations.

The pound declined to a 5-day low of 1.2562 against the Swiss franc, following an advance to 1.2608 at 4:00 am ET. On the downside, 1.24 is possibly seen as the next support level for the pound.

Looking ahead, Canada housing starts for May and building permits for April are scheduled for release in the New York session.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT FOREX and ECONOMIC NEWS STORIES


Pound Retreats Following BoE Decision (50 min(s), 44 sec(s) ago)
(RTTNews) - As expected, the Bank of England maintained key rate at 0.75 percent and quantitative ...Full Story»

Pound Mixed Ahead Of BoE Decision (59 min(s), 44 sec(s) ago)
(RTTNews) - At 7.00 am ET Thursday, the Bank of England announces the outcome of its monetary poli ...Full Story»

Norwegian Krone Climbs To Near 2-month High Vs Dollar After Norway Rate Hike (02 hr(s), 23 min(s), 44 sec(s) ago)
(RTTNews) - The Norwegian Krone moved up against the U.S. dollar in the early European session on ...Full Story»

Pound Little Changed Following U.K. Retail Sales Data (03 hr(s), 20 min(s), 43 sec(s) ago)
(RTTNews) - After the release of UK retail sales data at 4:30 am ET Thursday, the pound changed li ...Full Story»

Pound Mixed Ahead Of U.K. Retail Sales Data (03 hr(s), 29 min(s), 44 sec(s) ago)
(RTTNews) - The Office for National Statistics publishes UK retail sales data at 4:30 am ET Thursd ...Full Story»

U.S. Dollar Lower As Fed Hints At Rate Cut (05 hr(s), 14 min(s), 44 sec(s) ago)
(RTTNews) - The U.S. dollar fell against its major counterparts in the Asian session on Thursday, ...Full Story»

Yen Muted After BoJ Decision (06 hr(s), 20 min(s), 44 sec(s) ago)
(RTTNews) - The yen showed muted trading against its major opponents in the Asian session on Thurs ...Full Story»

Canadian Dollar Strengthens After Inflation Data (57 min(s), 16 sec(s) ago)
(RTTNews) - The Canadian dollar gained ground against its major counterparts in the European sessi ...Full Story»

Search

FOREX NEWS

Pound Retreats Following BoE Decision

06/20/2019 - 07:03 AM (RTTNews)
(RTTNews) - As expected, the Bank of England maintained key rate at 0.75 percent and quantitative ...Full Story>>

Pound Mixed Ahead Of BoE Decision

06/20/2019 - 06:55 AM (RTTNews)
(RTTNews) - At 7.00 am ET Thursday, the Bank of England announces the outcome of its monetary poli ...Full Story>>

Norwegian Krone Climbs To Near 2-month High Vs Dollar After Norway Rate Hike

06/20/2019 - 05:32 AM (RTTNews)
(RTTNews) - The Norwegian Krone moved up against the U.S. dollar in the early European session on ...Full Story>>

Pound Little Changed Following U.K. Retail Sales Data

06/20/2019 - 04:33 AM (RTTNews)
(RTTNews) - After the release of UK retail sales data at 4:30 am ET Thursday, the pound changed li ...Full Story>>

Pound Mixed Ahead Of U.K. Retail Sales Data

06/20/2019 - 04:25 AM (RTTNews)
(RTTNews) - The Office for National Statistics publishes UK retail sales data at 4:30 am ET Thursd ...Full Story>>
Copyright © 2019. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.