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 December are scheduled for release at 09.30 GMT in the European session ahead.

The manufacturing production, which makes up around 80% of total industrial production, is expected to decline to 0.6% on monthly basis in Jan, against a 1.3% growth seen in Dec. Meanwhile, the total industrial production is predicted to turn negative and show a -0.2% decrease m/m in Jan, as compared to a 2.1% increase 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 aforementioned data would be the first major economic release of this week from the UK docket. A positive surprise could provide extra legs to the minor-recovery seen in cable, which could help the rate to regain 1.22 handle, while, GBP/USD could fall back towards multi-week troughs at 1.2135, should the data show a worse-than expected deterioration in the industrial and manufacturing sector activity.

Key notes

UK: Focus on industrial production data – RBC CM

UK: Busy day with trade, IP, and construction data releases for the month of January - TDS

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).