EURGBP, H1
UK production and trade data smashed expectations in December data. Industrial output rose 1.1% m/m and by 4.3% y/y, up from respective growth figures of 0.8% and 3.3%, both of which were revised up by 0.1 of a percentage point. The median forecasts had been for a 0.2% m/m contraction and 3.2% y/y growth. The narrower manufacturing production figure surged to a growth rate of 2.1% m/m and 4.0% y/y, accelerating from the respective month-prior figures of 1.4% m/m and 1.7% y/y, which were also revised up and were also well up on the median forecasts. December trade figures revealed a narrowing in the overall deficit to GBP 3.3 bln from GBP 3.6 bln, which was itself revised up from a deficit of GBP 4.2 bln. The median forecast had been for a deficit of GPB 3.5 bln. No sign of Brexit blues here, and sterling and UK sovereign yields rose on the data.
On the 1 hour chart EURGBP broke the crossing 30 and 50 period moving averages earlier, while MACD, RSI and ADX remain neutral, with MACD below zero and negative, RSI is 43 and falling, and ADX lines are below the crucial level of 25. Therefore the 50-period moving average, around 0.8525, remains strong resistance from earlier this morning.
Click here to access the HotForex Economic calendar.
Want to learn to trade and analyse the markets? Join our latest webinar and get analysis and trading ideas combined with better understanding on how markets work.
Click HERE to register the next webinar will start in:[ujicountdown id=”Next Webinar” expire=”2017/02/14 11:00″ hide=”true” url=”” subscr=”” recurring=”” rectype=”second” repeats=””]
Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
