UK: Mixed economic releases – BBH

Today, the greenback is softer against all the major currencies but sterling as the UK's November industrial output was in line with expectations (0.4% month-over-month) while the October upward revision (0.2% from zero) lifted the year-over-year rate more than expected (2.5% vs median forecast on the Bloomberg survey of 1.8%), explains the research team at BBH.  

Key Quotes

“Construction output rose 0.4%, and while this was half the gain that was expected, the October series revisions made up the difference.”

“The disappointment came on the UK trade data.  The trade deficit deteriorated in contrast to economists' expectations for improvement.  The GBP2.8 bln deficit was nearly twice the median expectation and follows a sharp revision in the October deficit to GBP2.2 bln from GBP1.4 bln.”

“Sterling briefly was sold through the recent shelf near $1.35, but quickly snapped back as the dollar weakened across the board.  It made new session highs (above $1.3550) and could move closer to the top of the recent range (~$1.36).”