UK pound is getting a bit of a boost today, thanks to the latest industrial production data. There was a decline, true, but the decline in production for June was less than expected. The news, along with a bit of risk appetite, is helping the UK pound against low beta currencies like the US dollar and the Japanese yen.
Industrial production in the United Kingdom declined by 2.5 per cent, month over month, in June. However, analysts had expected a drop of 3.5 per cent. For the same period, manufacturing output dropped by 2.9 per cent, instead of the expected 4.3 per cent. This news indicates that maybe the UK economy isn’t as badly off as many expected.
As a result of these numbers, and also with a little help from risk appetite as Forex traders remain a slightly optimistic about the eurozone, the UK pound is higher against the US dollar and the Japanese yen. Pound is even making up ground against the euro, but against the low beta currencies is pound really has some juice.
At 13:21 GMT GBP/USD is higher, heading up to 1.5673 from the open at 1.5603. Against the Japanese yen, UK pound is up to 123.1425, rising from the open at 122.0750. EUR/GBP has slipped a little lower to 0.7935, down from the open 0.7948.
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