GBP/USD: needs more advocates for a rate hike - Scotiabank

Analysts at Scotiabank explained that the UK data reports disappointed on three fronts today.

Key Quotes:

"Industrial production fell sharply in Mar, reflecting weaker manufacturing, while construction output dropped a larger than expected 0.7% in the same month (following a 1.3% fall in Feb) trade reported a larger than forecast deficit (GBP13.4bn, versus 11.6bn forecast)."

"The GBP slipped but the main focus was on the BoE decision – this revealed an unchanged policy stance, as expected – and a 7-1 vote to keep the bank rate at 0.25%. With no other policy makers joining Forbes in dissenting, the GBP tumbled even though the policy statement suggested that tighter policy than the current yield curve implies may be needed."