Economists expecting that today’s industrial production report for the UK would show expansion were disappointed as production and manufacturing slumped amid an uneven economic recovery.
The Pound Sterling to Euro Exchange Rate was in the region of €1.1570 as of 10:35 GMT
1 Euro is currently worth 0.8641 pence
It was forecast that industrial production would rise by 0.2 per cent in May month-on-month, but it actually stagnated.
Similarly, manufacturing production declined by 0.8 per cent in May from April rather than rising the 0.4 per cent estimated.
Year-on-year, industrial production dropped by 2.3 per cent while manufacturing plummeted 2.9 per cent.
In response to the data London-based economist Philip Rush asserted: ‘It’d disappointing, and suggests that underlying growth is somewhat weaker than may have been expected. It looks like industrial production will make a negligible contribution to GDP. The Bank of England is likely to be leaving policy on hold or potentially loosening.’
The GBP/EUR exchange rate hit a low of €1.1535
The lacklustre data saw the Pound fall to 1.4892 against the US Dollar and slip to 1.1565 against the Euro.
The Euro has been supported during the European session by the news that Greece will receive the next instalment of its bailout package, and signs of the political tension in Portugal abating.
Meanwhile, a separate UK report showed that with exports climbing by 1.5 per cent and imports advancing by 1.3 per cent the goods-trade gap was relatively unchanged in May at 8.5 billion Pounds.
Additional Sterling volatility can be expected to occur this afternoon following the publication of the NIESR GDP estimate for June, due out at 15:00 GMT.
Current Pound Sterling (GBP) Exchange Rates
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.4895 <
The Pound Sterling/Euro Exchange Rate is currently in the region of: €1.1570 <
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6260 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9024 <
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6718 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8641 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6146 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5272 >
(As of 10:35 GMT)
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