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The British pound fell during the US session, its lowest since June 26, 2017 against the US dollar, showing the longest daily losses since late 2016 and the longest losing streak since early 2017, with a five- Weekly losses, following the economic developments and data that followed on Friday the British economy and the US economy, the largest economy in the world.
At 02:51 GMT GMT, the pair dropped 0.33% to 1.2782, compared to the opening levels at 1.2824, after reaching a 1.2723 year low of 1.2723, while the highest at 1.2837 .
We also followed the RSI reading of the Industrial Production Index for June, which showed that manufacturing production slowed to 0.4% from 0.6% in May, beating expectations of 0.3%, while Industrial Production showed a rise of 0.4% So compatible with expectations versus 0.2% decline in May.
This came in line with the reading of the balance of trade in goods, reducing the deficit to 11.4 billion pounds sterling against 12.5 billion pounds sterling, exceeding expectations that indicated a deficit to 12.0 billion pounds sterling, with the issuance of the British National Bureau of Statistics, the second monthly estimates of GDP For the month of June, which was 0.1% versus 0.3% in May, it was worse than the 0.2% forecast.
We also saw the services index for the three month period ending in June show growth accelerating to 0.5% against 0.4%, below expectations of 0.6%. This coincided with the release of the preliminary GDP reading for the second quarter which showed a growth acceleration of 0.4% With expectations for 0.2% growth in the first quarter. The same year's annual reading showed that growth accelerated to 1.3% in line with expectations versus 1.2%.
This was also in line with the initial reading of the second quarter of business investment, up 0.5% from 0.4% in the first quarter, beating expectations for a 0.4% rise, while the annual index of the same index slowed growth to 0.8% from 2.0% The previous year's reading, however, is still under pressure from the UK's growing chance of an irregular exit from the EU.
This was also in line with the initial reading of the second quarter of business investment, up 0.5% from 0.4% in the first quarter, beating expectations for a 0.4% rise, while the annual index of the same index slowed growth to 0.8% from 2.0% The previous year's reading, however, is still under pressure from the UK's growing chance of an irregular exit from the EU.
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