When is UK manufacturing production and how could affect GBP/USD?

UK manufacturing production Overview

The UK industrial and manufacturing production data for the month of February are scheduled for release at 08.30 GMT in the European session ahead.

The manufacturing production, which makes up around 80% of total industrial production, is expected to rebound to 0.3% on monthly basis in Feb, against a -0.9% contraction seen in Jan. Meanwhile, the total industrial production is predicted to return to positive territory and show a 0.2% increase m/m in Feb, as compared to a -0.4% decrease recorded previously.

Deviation impact on GBP/USD

 Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 20 and 35 pips in deviations up to 1.5 to -2.2, although in some cases, if notable enough, a deviation can fuel movements of up to 60 pips.

How could affect GBP/USD?

The event may have a significant impact on the GBP markets, as the UK industrial sector is expected to return to expansion. Better-than expected data could provide fresh impetus to the GBP bulls, which could help the rate to regain 1.25 handle, while, GBP/USD could fall back towards 1.2400 levels, should the data show a deterioration in the industrial and manufacturing sector activity.

Key notes

GBP/USD Forecast: stuck in a familiar trading range, UK data and NFP awaited

“Today's UK economic features the release of manufacturing and industrial production along with the goods trade balance data and the Halifax house prices index.”

UK: Downside risks to manufacturing output – TDS

“Manufacturing has surged in recent months on the back of a weaker currency and optimism over both domestic and global growth prospects…”

About UK manufacturing production

The Manufacturing Production released by the National Statistics measures the manufacturing output. Manufacturing Production is significant as a short term indicator of the strength of UK manufacturing activity that dominates a large part of total GDP. A high reading is seen as positive (or bullish) for the GBP, while a low reading is seen as negative (or bearish).