Today, the British pound has managed to gain momentum against the greenback. The rally was triggered by upbeat economic reports from the United Kingdom. According to official reports, the UK industrial production rose by 0.4% in November after increasing by 0.2% in the previous month. This result came in line with expectations. In annual terms the output growth slowed down to 2.5% from 4.3%. However, the pace of expansion exceeded expectations as analysts predicted a rise of 1.8%. Another indicator, which is also the key gauge of activity in the industrial sector, showed a rise as well. The manufacturing production advanced by 0.4% in November after increasing by 0.3% in the previous month.
There was also some bad news from the UK. The trade deficit widened to 12 billion 231 million pounds while experts anticipated that the deficit would narrow. However, investors paid little attention to this downbeat data and the British currency has strengthened against the greenback. The GBP/USD pair retreated from 1.3490 to 1.3550. Political developments can also influence the cable’s movements. Next week, parliament hearing will be held in the UK where the Brexit issue will be discussed.
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