Pound Falls After Weak U.K. Manufacturing Production; EU Summit In Focus
July 07 2015 - 7:50AM
RTTF2
The pound slipped against its major rivals in European deals on
Tuesday, as U.K. manufacturing production declined
more-than-forecast for May and investors awaited the outcome of EU
summit in Brussels.
Figures from the Office for National Statistics showed that U.K.
manufacturing production fell 0.6 percent in May, while it was
expected to increase by 0.1 percent.
On year, manufacturing production grew 1.0 percent in May,
slower than a 1.8 percent rise expected by economists.
Meanwhile, the industrial production rose 0.4 percent
month-over-month in May, defying economists' expectations for a 0.2
percent fall. It was the fourth consecutive monthly gain.
Eurozone finance ministers are holding an emergency meeting
after Greeks rejected bailout reforms in a referendum on Sunday.
Greek Prime Minister Alexis Tsipras has agreed to present new
proposal for aid, amid mounting pressure to reach cash-for-reforms
deal in an attempt to avert bankruptcy.
The pound showed mixed trading in the previous session. While
the pound rose against the yen and the franc, it held steady
against the euro. Against the greenback, the currency fell.
The pound declined to 1.5441 against the greenback, its lowest
since June 11. At Monday's close, the pair was worth 1.5598. The
next possible support for the pound-greenback pair is seen around
the 1.534 zone.
The pound slipped to nearly a 4-week low of 188.96 against the
yen, off early high of 191.54. If the pound-yen pair extends
decline, it may locate support around the 188.00 area. The pair was
quoted at 191.16 at yesterday's close.
Reversing from an early high of 1.4729 against the Swiss franc,
the pound hit a 4-day low of 1.4634. The pound is seen finding
support around the 1.45 mark. The pound-franc pair ended
yesterday's trading at 1.4696.
The pound, having advanced to 0.7058 against the euro at 4:30 am
ET, reversed direction with pair trading at 0.7106. On the
downside, 0.715 is possibly seen as the pound's next support level.
The pound was trading at 0.7079 against the euro when it ended
yesterday's trading.
Looking ahead, Canada and U.S. trade balance, both for May and
U.K. NIESR GDP estimate for June are scheduled to be released in
the New York session.
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