Trade Desk Thoughts - U.K. Manufacturing Production, U.K. Industrial Production

U.K. Manufacturing Production Actual -0.4%, Expected -0.2%, Previous -0.2%
U.K. Industrial Production Actual -0.6%, Expected -0.2%, Previous -0.4%

Release Explanation: Measures the total value of the output from mines, industrial factories and utilities is in the Industrial read. The value of manufactured goods is in the Manufacturing read. The Shipment number covers the amount sent abroad. High production numbers usually denote an economy in an upwards trend, or growth period. These reports are reactive to change and are well respected.

Trade Desk Thoughts: The U.K. manufacturing output decreased in August by 0.4%, compared with analyst estimations of -0.2%. Decreases were seen in 10 out of the 13 industries, having the biggest declines in transport equipment, which fell by 2.3%. There were no significant increases in the latest month. At the same time, industrial production dropped by 0.6%, diverging from market expectations.

Forex Technical Reaction: The pound weakened 25 pips soon after the release, after the pair fell during the overnight session. Against the euro, the pound has dropped 70 pips today.

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