UK CBI Industrial Orders Hit The Lowest Level In The Last Three Decades

Release Explanation: The release tries to gauge manager's expectations from the manufacturing industry by comparing actual sales with sales from last year.

TheLFB-Forex.com Trade Desk Thoughts: The UK CBI report shows the manufacturing sector remains gloomy about future expectations. The release number came in at -56, the lowest read since in the last thirty years.

In the last quarter demand plummeted, with 60% of firms reporting a fall in the volume of new orders compared with the previous quarter, and 13% reporting an increase. The resulting balance of -47% is the lowest in nearly 30 years, since October 1980 (-61%).

The very sharp falls in demand have resulted in continued job losses. Employment fell at the sharpest rate (a balance of -48%) since October 1991 (-49%), and firms expect to continue making job cuts, albeit at a slightly slower pace next quarter (-39%)

Forex Technical Reaction: The pound advanced 70 pips in the late Asian session, but since then the pair has traded mostly side-ways. Against the euro, the pound declined 50 pips in the European session.

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