UK Manufacturing Production dropped to negative territory for the first time in five months when the Office for National Statistics announced an output of -0.9% for the month of January.
Industrial output, made up by 80% Manufacturing Production and 20% Mines and Utilities also dropped to -0.4%.
The release sent the pound to a new weekly low at 1.4872.
The pound is expected to remain pressured for some time as the data is only a confirmation of the weak state of the country’s recovery.
A weak manufacturing output is an indication of weakening demand and employment. It also further confirms the slowing exports — manufacturing accounts for about 60% of UK’s exports.
On another hand, French Industrial Production rose unexpectedly by 1.6% in January.
German Trade Balance decreased to 8.7B.
At the start of the New York session, European currencies were able to rebound from their lows against the dollar.
The USDJPY is up sharply after the Trade Balance in China came in at the expected 7.6B level which increased investor’s sentiment.
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