(12 APRIL 2018)DAILY MARKET BRIEF 1:UK manufacturing and industrial production disappoint in February

Under Brexit pressure to split by December 2020 and uncertainty about the Irish border, the UK economy is in turmoil in Q1 2018. February month-to-month industrial and manufacturing production output was weak at +0.10% and -0.20% (prior: +1.30% and 0%). February’s trade deficit of GBP -965 million (prior: GBP 2.95 billion), due to lower imports caused by mid-February snow storms, decreased the likelihood of money tightening. March inflation data (to release on 18 April) will give a better view as to whether the Bank of England will hit its target of 2.40%.

Strengthening since the beginning of the year, GBP/USD currently trades at 1.4187 (+5.07% year to date) and is approaching its 2-year high, heading to 1.4195 short-term.

By Vincent Mivelaz