(MENAFN– ecpulse) Markets will look again for the string of economic data out of the United Kingdom following stronger-than-expected growth in manufacturing and services sectors. Investors will be anticipating key indicators Tuesday to see whether the economy continues to grow ahead of the Bank of England policy meeting due tomorrow.
Britain’s trade numbers will probably provide signs of solid improvement amid constant improvement in foreign demand and eased debt crises the euro-area, the UK largest trading partner, while confidence levels are seen edging up.
- Visible trade balance deficit likely eased to -£8800 million from -£9853million
- Trade balance with non-EU members expected at -£3850 million from -£4528 million
- Total trade balance seen around -£2200 million from -£3085 million
At 08:30 GMT, the Office of National Statistics (ONS) will also publish the index of industrial and manufacturing production data. Industrial output is expected to rise 0.4 percent in August over the previous month’s flat reading of 0.0 percent.
Manufacturing output probably rose 0.4 percent in August from 0.2 percent a month ago, while annual reading is expected at 1.0 following a drop of 0.7 percent in July.
Update on the UK industrial production and trade data will likely offer fresh hints over the health of the UK economy, after the surprising services and manufacturing data showed the sector grew at a faster than expected pace in August.
Good news will surely help lift the sentiment, if the industrial production and trade balance data beat expectations it would support pound.
The GBPUSD edged lower Wednesday to hit a session low of 1.60521, compared with the high of 1.61194. The pair is currently trading at 1.60600 after opening at 1.60808.
Investors will also be waiting outcomes from the Bank of England policy meeting due on Thursday, with the bank set to maintain its record-low interest rate and level of cash stimulus steady amid improving British economy.
Markets widely expect the central bank`s Monetary Policy Committee (MPC) to keep key interest rate at 0.50 percent and maintain bond-buying quantitative easing scheme at £375 billion at its October meeting.
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