BREAKING: GBP drops after miss in UK production data

A monthly GDP and production report for August from the United Kingdom was released this morning at 7:00 am BST. While GDP data came in-line with market expectations, production data disappointed. Industrial production slumped 0.7% MoM in August while manufacturing production dropped 0.8% MoM. GBP took a hit with GBPUSD dropping around 0.1% in the first minutes following the release.

UK, monthly data pack for August

• GDP (monthly): 0.2% MoM vs 0.2% MoM expected (-0.5% MoM previously)
• GDP (annual): 0.5% YoY vs 0.5% YoY expected (0.0% YoY previously)
• Industrial production (monthly): -0.7% MoM vs -0.2% MoM expected (-0.7% MoM previously)
• Industrial production (annual): 1.3% YoY vs 1.7% YoY expected (0.4% YoY previously)
• Manufacturing production (monthly): -0.8% MoM vs -0.4% MoM expected (-0.8% MoM previously)
• Manufacturing production (annual): 2.8% YoY vs 3.3% YoY expected (3.1% YoY previously)

GBPUSD dropped slightly following release of disappointing UK data but has since recovered majority of losses. Source: xStation5