GBP / USD
On Tuesday, the most markets were optimistic after the announcement of Donald Trump about the possible agreement with China on the peaceful resolution of trade disputes. UK Prime Minister Theresa May refused to support the US in the military invasion of Syria, which is positive for the pound sterling in the current situation. But if the military action takes place, the pound may fall significantly under the pressure of the dollar. On Tuesday, the British currency increased by 45 points, which also supported the overall increase by 1.4% in retail sales from BRC this May.
Today, the attention will be focused on industrial production data in the February assessment. Total Industrial Production is expected to grow by 0.4% after 1.3% in January. While production in the manufacturing industry is projected to increase by 0.2% against 0.1% a month earlier. Production in the construction sector would unlikely prevent the January decline by 3.4% versus the forecast of 0.7%. At 9:30 PM London time, the UK commodity trade balance for February will be published, with the forecast of -12.0 billion pounds sterling against -12.3 billion pounds in January.
In connection with the previous worst EU industrial production, European countries have high potential to yield negative indicators for the United Kingdom. In this case, the GBP / USD price would likely remain in the 1.4165-1.4215 range upwards, but the pair will be push below this range or stay within this range if the US data came in worse.
* The presented market analysis is informative and does not constitute a guide to the transaction.
