Horrible UK Numbers All Around – Looking At You, BOE - Forex News by FX Leaders

Horrible UK Numbers All Around – Looking At You, BOE

Posted Friday, July 7, 2017 by
Skerdian Meta • 1 min read

The BOE (Bank of England) has turned hawkish lately. Inflation picked up considerably in the UK, so the rate hike votes increased to 3 and the rhetoric from Mark Carney sounded sort of hawkish.

The funny thing is that the UK economic data used to be neutral or slightly positive until that BOE meeting, but since then, the data has turned sour, really sour.

We saw some signs of weakness in the last couple of weeks but today is a totally different story. Let's start with the first release.

The Halifax house price index showed a 1% decline. House prices have been absolutely surging in the past 5 years or so, particularly in the southeast of the country. When you see house prices fall, then there is something wrong with the economy.

Construction output also declined by 1.2% this month, so the whole picture of the housing market is complete and it looks gloomy.

Manufacturing and industrial production also declined, while the trade deficit increased. So, all the numbers from the UK are red on the calendar, not just missing on expectations, but turning down big time, particularly the housing sector.

The GBP/USD dived about 50 pips to 1.2910s but it has stalled. To me, this is a big bearish turnaround; the BOE can wave goodbye to any monetary tightening, but the market seems too slow to realize it. So, we've turned bearish for this forex pair as well.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of