(MENAFN– ecpulse) Markets will look again for the string of economic data out of the United Kingdom with industrial and manufacturing output data along with trade balance report due to be released later in the session. Investors will be anticipating key indicators Tuesday to see whether the economy continues to grow.
Britain’s trade numbers will probably provide signs of solid improvement amid continued recovery 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 -£9200 million from -£9816 million
- Trade balance with non-EU members expected at -£3600 million from -£3845 million
- Total trade balance seen around -£2800 million from -£3268 million
Also, at 09:30 GMT, the Office of National Statistics (ONS) will also publish the index of industrial and manufacturing production data. Industrial output is expected to fall to 0.4 percent in October from the previous month’s 0.9 percent.
Annual industrial production however is expected to edge higher, rising to 3.2 percent the year ended October from 2.2 percent growth a year earlier.
Manufacturing output probably fell to 0.4 percent in October from 1.2 percent a month ago, while annual reading is expected at 2.9 following 0.8 percent in the preceding year.
Update on the UK industrial production and trade data will likely offer fresh hints over the health of the UK economy, after George Osborne, Chancellor of the Exchequer, revised UK growth higher last week.
UK Chancellor of the Exchequer George Osborne said in his autumn forecast statement last week, that Britain`s economic plan is working, while he raised the country’s economic growth forecasts in 2013 and the following year.
Following Osborn’s speech, the Bank of England (BoE) revealed its interest rate decision, holding its key interest rate at a record low of 0.50% in December, in line with its forward guidance until Britain`s recovery is more firmly established.
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 higher Tuesday to hit a session high of 1.64319, compared with the session opening of 1.64253. The pair is currently trading at 1.64495.
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