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9 Jun 2014
GBP; reasons to be bullish – RBS
FXStreet (Guatemala) - Analysts at RBS explained, in the UK, industrial production figures are released tomorrow though the major event should be the employment figures on Wednesday.
“Our expectation of another dip in the unemployment rate to 6.7% leaves us positive on the GBP this week vs. EUR and USD, though less so vs. higher beta currencies amid ECB and PBOC easing”.
“For the industrial production print, we expect underlying manufacturing output to rise 0.2% m/m, which is slightly below the listed consensus. Our UK Economics colleagues are quick to note, however, that manufacturing is currently rising at a robust rate, meaning a slowdown is not indicative of a sharp slowdown in a still-strong manufacturing trend”.
“Our expectation of another dip in the unemployment rate to 6.7% leaves us positive on the GBP this week vs. EUR and USD, though less so vs. higher beta currencies amid ECB and PBOC easing”.
“For the industrial production print, we expect underlying manufacturing output to rise 0.2% m/m, which is slightly below the listed consensus. Our UK Economics colleagues are quick to note, however, that manufacturing is currently rising at a robust rate, meaning a slowdown is not indicative of a sharp slowdown in a still-strong manufacturing trend”.