The pound has held its gains against the dollar this week following data showing that Britain’s factory output recovered in February leading to easing of fears of a triple-dip recession. With the GBP/USD hitting the 1.5325 at some point in the afternoon trade which was its session high so far, the pair later merged in 1.5312, gaining roughly 0.39 %.
Cable could probably find support at 1.5198; this week’s low and struggling at the 1.5362 level in a six-week high streak.
The office for National Statistics stated that that the UK manufacturing production increased by 0.8 % in the first quarter, defeating the expected 0.3 % increase. However, the quarter’s preliminary data were adjusted down to a fall of 1.9 % from previous reported continued sprawl of 1.5 %.
The industrial production increased by 1 % in the first quarter of this year as compared to the projected expectations for a 0.3 % increase following its earlier fall of 1.4 % in the same quarter respectively. The report further stated that the industrial production declined 2.2 % year-on-year as compared to the 2.8 % speculated fall.
A separate survey revealed that the UK goods trade deficit broadened to GBP 9.4 billion last quarter from GBP 8.2 billion in the same quarter of an earlier month as compared to the expected net loss of GBP 8.6 billion. Britain’s exports went down by 2.8 % in the second month of the last quarter while at the same time imports went up by 0.3 %.
The pound went lower against the yen, with GBP/JPY is sliding down 0.16 % to 151.38 but was able to maintain close to its highest level since October 2009. On the other hand, the sterling was slightly higher against the euro with the EUR/GBP sliding 0.10 % to 0.8518 respectively.
Trade appeared to be relatively restrained for the majority of the week, with not foremost economic data releases from the U.S. of the fiscal year.