UK manufacturing and production data will have a say in the next direction for the pound
Up at 08.30 GMT we have UK industrial production for July. Industrial output is expected to rise 0.1% m/m following a 0.4% drop in June. Manufacturing output is set to come in the same as June at 0.2% m/m
How did the UK do in July?
The Markit Manufacturing PMI beat expectations by posting 51.9 vs 51.5 exp. That was up from the June 51.4. At the least that points to a confirmation of what's expected
The CBI industrial trends orders index adds some negativity to July as it fell to -10 from -6 in June early 2014
Manufacturing has been on the slide since early 2014 and there's no real sign of a turnaround, especially if we note August's PMI which fell back to 51.5
The trading risk today is finely balanced. Come in worse and reality comes back into focus and that won't be good for the pound. A number around expectations might be enough to keep the bid cable and maybe another look at the high. A decent beat and the buyers will sailing the quid well into 1.54
The BOE is tomorrow so once again data is important. Keep an eye out for any suspicious moves ahead of the number, as we've been known to see
