Although investors are waiting for 13:00 and the Bank of England meeting, in the morning we had some other data from the UK that triggered a drastic weakening of the pound. Industrial production and trade balance disappoint market.
Data on production and export-import performance unfavourable for the pound
According to the information released after 10:30 am, March industrial production m/m has a strong downward dynamics (-0.5%) far below expectations of analysts. In addition, the February results were depreciated to -0.8%.
The trade deficit, which had reached nearly two billion pounds, was also unfavourable.
In the first EUR/GBP reaction, we saw rapid growth and new session highs. Dynamic appreciation stopped only at the mid-pivot level of M4 0.8424:
A similar situation is seen on GBP/USD. The quotes slumped by several dozen pips in the vicinity of Tuesday minima and PP S1 1.2913:
