020 7898 0500It was another bad day at the office for the dollar against sterling which was unable to climb higher following the slight gains against the pound made on Tuesday. Indeed, it sank to its lowest mark against sterling since the Brexit vote and it will be interesting to see whether it will weaken further in the near future. There is clearly some resistance around it losing too much ground against the pound, but you never can tell whether it will fall through that level and weaken further.
It was actually a positive day for US economic data in many ways, as industrial production in the UK increased by 3.6% year-on-year in December. That’s the largest annual gain in industrial production since November 2014. However, manufacturing production slowed a little to 2.4% from 2.5% in November.
Today sees the release of building permits for December, housing starts and initial jobless claims up to 13 January 2017. But the main focus will be on the direction the dollar moves against a basket of currencies.
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