GBP / USD
The British pound continues to develop in the narrow range of 1.4165-1.4215, which fully corresponds to the forecast yesterday, as the United States did not receive convincing inflation data. While the CPI data for March showed a decrease of 0.1% and a base indicator growth of 0.2%. The industrial production data in the United Kingdom came out even more inconclusive, which is part of the general decline of the industry across Europe. Industrial Production for February increased by 0.1% only against expectations of 0.4%. Production in manufacturing (Manufacturing Production) decreased by 0.2% against the forecast of growth by 0.2%. Production in the construction sector fell by 1.6% against expectations of growth of 0.7%. The UK trade balance for February showed an increase of -10.2 billion pounds against -12.2 billion in January. The GDP forecast from NIESR in March was 0.2%, but there was a sharp drop for the previous month from 0.3% to 0.1%. The NIESR quarterly estimate is 0.2% vs. 0.4% for the fourth quarter of last year.
This morning, the house price balance in the UK RICS for March showed zero growth. During the day, the Bank of England will report on the status of the credit market. And in the evening, Mark Carney speaks at a development conference in Toronto and monetary policy will not be touched.
We are looking forward to the price out of the current range downward and the pound drops to 1.4070 under dollar pressure.
* The presented market analysis is informative and does not constitute a guide to the transaction.
