GBPUK industrial production printed well below consensus forecasts with a 2.7% decline for April and a plunge in auto manufacturing output triggered a 3.9% drop in manufacturing output, the sharpest drop since 2002. Year-on-year, Industrial production declined 1.0% which fed into a sharp 0.4% decline for monthly GDP, the biggest...

GBPAnother data-light day meant UK influences were limited and markets focussed on global risk appetite and trade developments. The Euro strengthened to test the 1.1225 level and the US economic data allowed the Pound to peak just above 1.2750 before fading slightly.

GBPWith no UK economic data and Mark Carney stating rate hikes were still on the table, the Pound rose before settling much where it started. Broad-based US Dollar weakness based on expectations of future interest rate cuts, and the European Central Bank (ECB) policy meeting being more positive than forecast...

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Europe Deflating

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GBPDave Ramsden, Bank of England (BoE) Deputy Governor, stated that he held a slightly pessimistic view of the UK growth outlook compared to the Bank, but a smooth Brexit process would mean gradual monetary policy tightening would become appropriate.

GBPWith no UK economic data releases, political developments and global market trends continued to drive Sterling trading. James Cleverly joined the Conservative leadership race divisions deepened within the Labour Party. Brexit concerns continued to erode Sterling support, although a formal endorsement of a second referendum by Labour could boost increasing...

GBPPolitics and the Pound have not mixed well lately. Sterling remains under pressure as the race to replace Theresa May gathers steam. The market is, however, hoping for a quick return to the Brexit process and investors are waiting for more clarity on future exit plans.