The Pound fell against the Euro and tumbled against the US Dollar and most of its other peers after a plethora of UK economic data reports came in worse than forecast.
1 US Dollar is currently worth 0.6260 pence
Industrial output was the worst of the bunch as data showed that it unexpectedly fell in August as factories slowed production. According to the Office for National Statistics industrial output fell by -1.5% on a year-on-year basis and by -1.1% month by month. The monthly figure marks the biggest drop since September 2012.
Manufacturing output also disappointed economists who had been expecting an increase rather than the unexpected decline seen in August. In its report the ONS said that manufacturing production fell by a seasonally adjusted 1.2% in August, confounding expectations for a rise of 0.4%. On a yearly basis output fell by 0.2%, well below expectations for an increase of 1%.
The UK’s trade balance also narrowed less than expected. Instead of the decrease to -£2050 expected by economists it came in at -£3320. The worse than expected figure is being blamed on an increase in imports and a narrowing of the non-EU’s own trade balance, whilst the EU gap widened to a record high.
“There’s a sense of disappointment in today’s data, which has weighed on the Pound. The pace of economic recovery in the UK may prove slightly less robust than anticipated” a currency strategist said.
The disappointing data comes a day after the International Monetary Fund raised its forecast for the UK economy.
Current Pound Sterling (GBP) Exchange Rates:
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5972 <
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1809 <
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6898 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9236 <
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6260 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8465 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5916 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5198 >
(As of 10:30 am GMT)
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