The Pound Sterling took a sharp downturn after the Office of National Statistics released data which disappointed many FX traders. Manufacturing and industrial production for April failed to meet analysts’ expectations, with month-over-month figures falling to -3.9% and -2.7%, respectively; analysts had predicted a decline in the data to 0.2% and 0.1% from the previous month’s readings of 0.9% and 0.7%. Coupled with uncertainty over the outcome of the race to replace the outgoing Prime Minister, and analysts are predicting that Sterling sentiment will continue to decline.
As reported at 11:12 am (GMT) in London, the GBP/USD was trading lower at $1.2687, down 0.3877% and just a few pips off the session trough of $1.2684. The EUR/GBP is trading at 0.8912 Pence, a gain of 0.1686%; the pair has ranged from a session low of 0.88772 Pence to a high of 0.89142 Pence.
Mexican Peso Surges on News Tariffs Averted
In North America, the Mexican Peso moved higher against the US Dollar after the respective governments found room to agree on the issue of immigration. In so doing, a trade war was averted which would have resulted in higher tariffs. Overall, that news helped to lift risk appetite. The USD/MXN was trading lower at 19.1959 Mexican Pesos, down 2.113%; the pair has ranged from 19.13780 Mexican Pesos to 19.60900 Mexican Pesos in today’s session.