9 Jul 2014
GBP losing upside momentum - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, observed the offered tone in the sterling following disappointing releases in the UK.
Key Quotes
"The pound has lost some upward momentum in the near-term following the release yesterday of the weaker than expected industrial production report for May. The report revealed that manufacturing production unexpectedly contracted by -1.3% in May echoing weakness already evident in other euro-zone IP reports."
"However, the sharp contraction in activity seems at odds with more buoyant surveys leaving us somewhat sceptical over the scale of reported weakness. The NIESR estimated that economic growth in the UK remained robust in Q2 expanding by 0.9%. The BRC also reported deflation pressures intensified further amongst retailers in June."
Key Quotes
"The pound has lost some upward momentum in the near-term following the release yesterday of the weaker than expected industrial production report for May. The report revealed that manufacturing production unexpectedly contracted by -1.3% in May echoing weakness already evident in other euro-zone IP reports."
"However, the sharp contraction in activity seems at odds with more buoyant surveys leaving us somewhat sceptical over the scale of reported weakness. The NIESR estimated that economic growth in the UK remained robust in Q2 expanding by 0.9%. The BRC also reported deflation pressures intensified further amongst retailers in June."