The pound drifted lower against its major opponents in European trading on Tuesday, after data showed that the nation’s industrial production declined unexpectedly in November on falling energy output.
Figures from the Office for National Statistics showed that industrial output slid 0.7 percent month-on-month after staying flat in October. It was forecast to grow 0.1 percent in November.
On a yearly basis, industrial production advanced 0.9 percent, but slower than the 1.7 percent increase posted in October. Output was forecast to grow again by 1.7 percent.
The Bank of England governor Mark Carney will take part in a panel discussion titled “Legacy for Business Models and Financial Stability” later in the day. His speech comes just two days ahead of the BoE monetary policy announcement, when the central bank is expected to keep its key interest rate unchanged at 0.5 percent.
In other economic news, data from the British Retail Consortium showed that the U.K. like-for-like sales rose 0.1 percent on year in December.
That was well shy of forecasts for an increase of 0.5 percent following the 0.4 percent contraction in November.
Meanwhile, the European stocks rose, tracking recovery in Chinese shares, despite weakness in oil.
The currency has been trading in a negative territory in the Asian session.
The pound lost 0.72 percent to 1.4436 against the dollar, its lowest since June 2010, from Monday’s closing quote of 1.4540. If the pound-greenback pair extends slide, 1.42 is possibly seen as its next support level.
Reversing from an early 2-day high of 1.4583 against the Swiss franc, the pound edged down to 1.4450. The next possible support for the pound-franc pair may be located around the 1.43 zone.
The pound edged down to 170.03 against the Japanese yen, reversing from an early high of 171.70. On the downside, 168.00 is likely seen as the next support level for the pound-yen pair.
Survey data from the Cabinet Office showed that Japan’s consumer confidence improved unexpectedly in December, though slightly.
The seasonally adjusted consumer confidence index rose to 42.7 in December from 42.6 in the previous month. Economists had forecast the index to drop to 42.4.
The pound weakened to 0.7520 against the euro, after climbing to 0.7452 at 8:15 pm ET. Continuation of the pound’s downtrend may lead it to a support around the 0.78 region.
Looking ahead, at 2:00 pm ET, European Central Bank Executive Board Member Sabine Lautenschlaeger is expected to speak at Zonta Club, in Frankfurt.
Subsequently, at 3:15 pm ET, Federal Reserve Bank of Richmond President Jeffrey Lacker will speak on “Economic Outlook January 2016” before the South Carolina Business and Industry Political Education Committee in Columbia annual meeting, in South Carolina.
The material has been provided by InstaForex Company – www.instaforex.com