When is UK manufacturing production and how could affect GBP/USD?

UK manufacturing production Overview

The UK industrial and manufacturing production data for the month of May are scheduled for release at 08.30 GMT in the European session ahead.

The manufacturing production, which makes up around 80% of total industrial production, is expected to tick higher by 0.5% on monthly basis in May, against a 0.2% expansion seen in April. Meanwhile, the total industrial production is also seen rising to show a 0.4% increase m/m in May, as compared to a 0.2% rise recorded previously.

On annualized basis, both the industrial and manufacturing production are expected to rebound sharply in May, by 0.2% and 1% respectively.

Deviation impact on GBP/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 20 and 35 pips in deviations up to 1.5 to -2.2, although in some cases, if notable enough, a deviation can fuel movements of up to 60 pips.

How could affect GBP/USD?

The event could have a bearing on the GBP markets, however, the main market moving event for today remains US payrolls data.

Better-than expected data could provide fresh impetus to the GBP bulls, which could drive the rate back towards 1.3000. However, GBP/USD could drop to test 1.2900 levels, should the data show a negative surprise in the industrial and manufacturing sector activity.

Key notes

UK: Mixed results expected from the flurry of hard data - TDS

GBP/USD Forecast: bulls eyeing a decisive break through 1.30 mark, NFP holds the key

About UK manufacturing production

The Manufacturing Production released by the National Statistics measures the manufacturing output. Manufacturing Production is significant as a short term indicator of the strength of UK manufacturing activity that dominates a large part of total GDP. A high reading is seen as positive (or bullish) for the GBP, while a low reading is seen as negative (or bearish).