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Forex: EUR/GBP rallies above 0.8750 on UK industrial production

The EUR/GBP has been finding resistance at the 0.8750 area and the London opening allowed a pullback to 0.8720 zone ahead of the load of UK data. Numbers came in mixed with good trade data in concerning industrial/manufacturing figures, but investors show clear worries and the GBP is at a selloff now. The EUR/GBP rallies above 0.8750, already at 0.8778 high.

UK Goods Trade deficit narrowed from £-8.738B in January (revised from £-8.897B) to £-8.195B, beating consensus of £-9.000B. Non EU-trade data was also well received, at £-3.28B, from £-4.169B (consensus of £-4.50B).

UK industrial production fell -1.2% (consensus of +0.1%) and manufacturing production dropped -1.5% (consensus of 0.0%) in January. Annualized data contracted further from -2.1% to -2.9% (consensus of -1.1%) and from -1.6% to -3.0% (consensus of -1.1%), respectively.

“Provided dips lower are contained by 0.8687/70, we will assume an overall upside bias for now”, wrote Commerzbank analyst Karen Jones, pointing to interim resistance at 0.8764, the 20th of February high.

UK: Annual Industrial Production tumbles 2.9% in January

Year-over-year UK Industrial Production fell by 2.9% in January, following a 2.1% drop in December, National Statistics informed on Tuesday. Analysts forecasted less decline of 1.1%. UK Industrial Production slid by 1.2% between December 2012 and January 2013, in comparison with the 1.1% increase registered between November 2012 and December 2012 and against expectations of a 0.1% rise.
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UK: Goods Trade deficit narrows in January against expectations

UK Goods Trade deficit narrowed to £8.195 billion in January from £8.738 billion in December, according to data released today by National Statistics. Analysts expected the deficit to widen to £9.000 billion.
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