In April, UK industrial production dropped -2.7% mom, -1.0% yoy, much worse than expectation of -1.0% mom, 0.9% yoy. Manufacturing production dropped -3.9% mom, -0.% yoy, also way below expectation of -1.4% mom, 2.0% yoy. The contraction in manufacturing sector was the worst since June 2002 and the impact of Golden jubilee shutdowns. Also from UK, visible trade deficit narrowed to GBP -12.1B in April versus expectation of GBP -13.1B.
GBP/USD dips notably after the data releases. Focus is immediately back on 1.2668 minor support. Break will indicate completion of the corrective rebound from 1.2559. Further decline would then be seen back to retest 1.2559.
