GBP/USD Rallies Briefly After Release of UK Production Data for January

The GBP/USD today tested new daily highs after the release of the UK’s production data for the month of January by the Office of National Statistics. The currency pair started the day’s session trading in a range, but rallied higher after the release of the UK’s production data, which had mixed results.

The British pound rallied against the US dollar, the euro and the Japanese yen after the release of the UK’s production data.

The British pound’s rally was triggered by the UK’s monthly industrial production data for January, which met expectations as it was recorded at 0.4%. The UK’s Consumer inflation expectations also rose to hit 2.9% from the previous 2.8%. The UK’s goods trade balance also came in above expectations at £-10.833 billion as opposed to the expected £-11.05 billion.

The currency pair’s rally was also affected by the UK’s goods trade balance which was recorded at £1.97 billion, which was lower than the previous month’s deficit of £3.304 billion. The currency pair’s rally was tempered by other factors that have applied downward pressure on the British pound including the uncertainty surrounding the triggering of article 50 by Theresa May‘s March 31 deadline.

The Cable’s future performance will be affected by the release of the non-farm payroll data in the USA scheduled for later today.

The GBP/USD was trading at 1.2165 as at 10:14 GMT having retraced most of its daily gains from a high of 1.2179 post the production data release. The GBP/JPY was trading at 140.36 having dropped from a high of 140.53, during the brief rally.

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