More Bad Macroeconomic Data from UK, Pound Hurt

The Great Britain pound slid versus the euro and the Japanese yen today after the macroeconomic data showed that industrial production slowed in July and house prices declined last month. Both results came out as an unpleasant surprise for market participants.
Halifax house price index declined 1.2 percent in August on a monthly basis. The decline followed three consecutive months of increases and traders hoped that last month the index would also rise. Industrial production, according to the government report, fell 0.2 percent in July from June. Economists predicted no change. The depressing data reinforced expectations of additional stimulus by the nation’s central bank.
GBP/JPY fell from 123.72 to 123.24 today as of 10:23 GMT. At the same time, EUR/GBP traded at 0.8787 after jumping from 0.8779 to 0.8828, the highest level since September 1.

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