Forex News – Sterling jumps after strong manufacturing data
May 9, 2013 10:45 am
Sterling jumped against the dollar after better-than-expected manufacturing data which gives signs that the UK economy is on the mend. The upbeat data will make it unlikely that the Bank of England will change current monetary policy and will leave interest rates unchanged.
The Bank of England ends a two-day policy meeting today and is due to announce its decision on interest rates which are expected to remain on hold at 0.5 percent as well as the asset purchase facility at 375 billion pounds.
According to the UK Office for National Statistics, industrial production rose 0.7 percent on the month in March well above forecasts of a 0.2 percent gain. Today’s data comes after a downwardly revised increase of 0.9 percent in February.
On a quarterly basis, the first quarter ending in March , industrial output was 0.2 percent higher compared with the previous quarter, exactly in line with what the ONS had projected as part of its first-quarter GDP.
GBPUSD surged to a session high of $1.5585 within minutes of the data at 09:30 am London time, up from a pre-data low of $1.5549.
Sterling jumped against the dollar after better-than-expected manufacturing data which gives signs that the UK economy is on the mend. The upbeat data will make it unlikely that the Bank of England will change current monetary policy and will leave interest rates unchanged.
The Bank of England ends a two-day policy meeting today and is due to announce its decision on interest rates which are expected to remain on hold at 0.5 percent as well as the asset purchase facility at 375 billion pounds.
According to the UK Office for National Statistics, industrial production rose 0.7 percent on the month in March well above forecasts of a 0.2 percent gain. Today’s data comes after a downwardly revised increase of 0.9 percent in February.
On a quarterly basis, the first quarter ending in March , industrial output was 0.2 percent higher compared with the previous quarter, exactly in line with what the ONS had projected as part of its first-quarter GDP.
GBPUSD surged to a session high of $1.5585 within minutes of the data at 09:30 am London time, up from a pre-data low of $1.5549.
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