Economic news is weighing on the UK pound today, bringing it down against major counterparts. Industrial and manufacturing production numbers are lower than expected, and that indicates that UK economy is slowing.
The latest numbers out of the United Kingdom have been disappointing, with industrial production falling 0.7 per cent in November from the previous month. Manufacturing production fell by 0.4 per cent, when an expansion had been expected.
This news hasn’t been boding well for the sterling. With economic slowing continuing, it is doubtful that the Bank of England‘s policymakers will want to tighten monetary policy. Many have hoped that the BOE will end its asset purchase program and start rate hikes, but it might be some time before this happens.
Meanwhile, policymakers in the United States are considering when to make another rate hike and the economic situation in the eurozone seems to be making some improvement. The UK pound looks to be left behind due to the disappointing performance of the UK economy.
At 14:30 GMT GBP/USD is lower, falling to 1.4427 from the open at 1.4435. EUR/GBP is higher, moving up to 0.7552 from the open at 0.7539. Due to concerns about Japan, GBP/JPY is a little higher, moving up to 169.8710 from the open at 169.8580.
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